HomeMy WebLinkAboutagenda item 2016 0310 rdc 02aSOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULE REGULAR MEETING
February 22, 2016
9:30 a.m.
Presiding: David Varner, Vice President
The meeting was called to order at 9:30 a.m.
1. ROLL CALL
Members Present:
IIViOTE TAITMV p
Legal Counsel:
Redevelopment Staff
ITEM: 2.A.
227 West Jefferson Boulevard
South Bend, Indiana
David Varner, Vice President
Don Inks, Secretary
Gavin Ferlic
Marcia Jones, President
Greg Downes
John Anella
Benjamin Dougherty, Esq.
David Relos, Associate II
Tracy Oehler, Recording Secretary
Others Present: Scott Ford, Executive Director
Brian Pawlowski, Assistant Executive Director
Elizabeth Leonard -Inks, Director
Aaron Kobb, Director
Elizabeth Maradik, Associate
Jitin Kain, Assistant City Engineer
Brent Sheppard
Conrad Damian
Ed Bradley
Paul Phair
Kevin Allen
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of Thursday, January 28, 2016
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion carried
3 -0 (President Jones and Commissioner Downes absent), the Commission approved
the Minutes of the Regular Meeting of Thursday, January 28, 2016.
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 2
B. Approval of Minutes of the Regular Meeting of Thursday, February 11, 2016
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion carried
3 -0 (President Jones and Commissioner Downes absent), the Commission approved
the Minutes of the Regular Meeting of Thursday, February 11, 2016.
3. APPROVAL OF CLAIMS
A. Claims Submitted February 11, 2016 (Ratification)
324 Fund River West Development Area
TriCounty Newspaper
TriCounty Newspaper
Pacific Press Technologies
Equal Construction LLC
Gladwin Machinery & Supply Co.
TriCounty Newspaper
43.67
Notice to Bidders Nello Equipment Purchase
71.63
Notice of Intended Disposition of Property
Weaver Boos Consultants
(Indiana, Kemble, Scott)
874,442.50
Nello Equipment Purchase
102,926.82
Hoffman Hotel - Windows
267,465.25
Nello Equipment Purchase
71.63
Notice of Intended Disposition of Property
435 Fund Douglas Road Development Area TIF
City of South Bend 140,000.00 Major Move Fund 412
$1,385.021.50
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion carried 3 -0
(President Jones and Commissioner Downes absent), the Commission ratified the claims
submitted February 11, 2016.
B. Claims Submitted February 22, 2016
324 Fund River West Development Area
Kolata Enterprises LLC
1,620.00
Hull & Associates
270.00
Weaver Boos Consultants
7,002.51
RealAmerica Construction LLC
114,401.30
South Bend Tribune
78.76
R. E. Pitts & Associates, Inc.
Appraisal Service, Inc.
422 Fund West Washington Development TIF
Troyer Group Inc.
429 Fund River East Development Area
TriCounty Newspaper
430 Fund South Side TIF Area #1
Lawson - Fishers Associates
DLZ
1,350.00
500.00
Contractual Services - Environmental
Extended General Consulting
Ivy Tower
LaSalle Apartments
Advanced Centers for Cancer Care
Equipment Purchase
Hamilton Towing Appraisal
Hamilton Towing Appraisal
3,366.00 City Cemetery Master Plan
53.34 Notice to Bidders Colfax Ave. & Hill St.
Improvements Division A
150,877.25 Roundabout Intersection Improvement of
Chippewa Ave. at Michigan and Main Street
778.00 Ireland Right of Way Acquisition
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 3
436 TIF Northeast Residential
City of South Bend 386,218.56 Major Moves Fund 412 — Eddy Street
Commons
City of South Bend 60,371.00 Major Moves Fund 412- Triangle
Development
$726,886.72
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion carried 3 -0
(President Jones and Commissioner Downes absent), the Commission approved the
claims submitted February 22, 2016.
4. OLD BUSINESS
None.
5. NEW BUSINESS
A. Public Hearings
(1) Public Hearing on Resolution Nos. 3326, 3327, and 3328 (Additional 2016 TIF
Appropriations)
Mr. Relos noted the Public Hearing file is complete, containing a copy of Resolution
No. 3325 setting the Public Hearing, a copy of the Notice of Hearing, a copy of each
of Resolution Nos. 3326, 3327, and 3328, an affidavit from the South Bend Tribune
publisher and a confirmation email from the Tri- County News publisher documenting
the Notice of Hearing was published in each newspaper on February 12, 2016.
Vice President Varner opened the Public Hearings.
Ms. Leonard -Inks introduced Resolution Nos. 3326, 3327, and 3328. There were no
speakers.
Vice President Varner closed the Public Hearings.
B. River West Development Area
(1) Approval of Application and Letter of Agreement for Custom Work for the
Disconnection and Relocation of Underground Fiber Line (AT &T)
Mr. Relos stated on January 14, 2016, the Commission approved an authorization to
prepare a quote for AT &T to engineer the disconnection and relocation of an
underground fiber line located in Ignition Park South. The cost for AT &T to remove
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 4
and relocate service is $17,214.43. Staff is requesting approval of the agreement in
a not -to- exceed amount of $20,000.
Upon a motion by Commissioner Ferlic, seconded by Secretary Inks the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the Application and Letter of Agreement for Custom Work for the
disconnection and relocation of the underground fiber line with AT &T in an amount
not -to- exceed $20,000.
(2) Approval of Equipment Lease Agreement (Advanced Centers for Cancer Care)
Mr. Kobb stated on October 15, 2015, a Development Agreement was executed
between the Commission and Advanced Centers for Cancer Care (AC3). The
Agreement called for a $7 million private investment by AC3, the creation of 110 new
jobs, and the leasing of approximately 13,525 square feet of commercial space in
the building commonly known as One Michiana Square. An unexecuted version of
the equipment lease agreement was included in the development agreement to be
revised and executed upon the successful procurement of the equipment.
Mr. Dougherty stated in addition, there is a First Amendment to the Development
Agreement to include this Equipment Lease Agreement as part of a procedural
practice.
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the First Amendment to the Development Agreement and Equipment
Lease Agreement with Advanced Centers for Cancer Care.
Vice President Varner requested Items 5.B.(3), 5.B.(4), and 5.B.(5) be considered
simultaneously as they pertain to the disposition of property for the Hamilton Towing Block.
Mr. Relos gave the staff report.
(3) Approval of Resolution No. 3329 Establishing the Offering Price of Property
(Hamilton Towing Block)
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved Resolution Number 3329 establishing the offering price of property of the
Hamilton Towing Block.
(4) Approval of Bid Specifications and Design Considerations for Property
(Hamilton Towing Block)
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 5
approved the bid specifications and design considerations for Hamilton Towing
Block.
(5) Authorization to Publish the Notice of Intended Disposition of Property with
Publication Dates of March 4, 2016 and March 11, 2016 for Property (Hamilton
Towing Block)
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the authorization to publish the Notice of Intended Disposition of Property
with publication dates of March 4, 2016 and March 11, 2016 for Hamilton Towing
Block.
(6) Approval of Professional Services Agreement for Hamilton Towing Block
ALTA Survey & Alley Vacation ( Danch Harrier & Associates, Inc.)
Mr. Relos stated as part of preparing the Hamilton Towing Block for disposition,
there is a need to understand the various easements or other restrictions that may
be in place. Additionally, there is an east/west and north /south alley that dissects the
block, and to be fully functional as a development site, it needs to be vacated. The
proposal will provide an ALTA survey and alley vacation paperwork to complete
these functions in an amount of $6,640. Staff is requesting a not -to- exceed amount
of $8,000 in the event additional filing fees are required or additional utility
companies are discovered.
Upon a motion by Commission Ferlic, seconded by Secretary Inks the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the Professional Services Agreement for Hamilton Towing Block ALTA
Survey & Alley Vacation with Danch Harner & Associates, Inc. in a not -to- exceed
amount of $8,000.
(7) Approval of Agreement to Buy and Sell Real Estate for 402 S. Lafayette
Boulevard (412 SB LLC)
Mr. Pawlowski introduced himself to the Commission.
Mr. Pawlowski stated after going through the disposition process in September 2013
with an average appraised value of $82,500, no bids were received for the property
located at 402 S. Lafayette Boulevard. Xanatek is a small business located in South
Bend for ten years. They employ 24 people with an average salary of $53,000
annually and are preparing to hire 15 to 25 more people in the next five years.
Currently, Xanatek is planning to purchase the JPR building adjacent to the lot
specified above with the total investment for purchase and upgrades of
approximately $750,000.
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 6
In purchasing the property, Xanatek agrees to the following terms: within 18 months
invest up to $225,000 into the JPR building; purchase the lot for $20,000; within 18
months invest up to $120,000 into lot improvements; obtain City approval of lot
improvement design; and give the City a first right of refusal should the property be
on the market in the future.
Upon a motion by Commission Ferlic, seconded by Secretary Inks the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the Agreement to Buy and Sell Real Estate for 402 S. Lafayette Boulevard
with 412 SB LLC.
(8) Establishing the Budget for the Fellows Streetscape
Ms. Maradik stated the City worked with MGLM Architects to develop the Southeast
Neighborhood Master Plan, which was made available for public comment at the
end of 2015. The plan identifies infrastructure improvements as a top priority for the
neighborhood. Given this priority, the City wishes to complete streetscape work
along Fellow Street as part of the plan implementation. Anticipated improvements
include curbs, sidewalks, trees (where they will fit in the tree lawn), street paving,
and potentially pedestrian -scale lighting.
Staff is requesting the Commission approve $1,350,000 in funding from the River
West Development Area.
Upon a motion by Commission Ferlic, seconded by Secretary Inks the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the budget for the Fellows Streetscape project in the amount of
$1,350,000.
(9) Approval of Agreement to Buy and Sell Real Estate for Cleveland and Olive
Road Tracts (Holladay Property Services Midwest, Inc.)
Mr. Pawlowski stated the Agreement to Buy and Sell Real Estate is for two tracts of
land near each other on Cleveland and Olive Roads. The Cleveland property is a 10
acre site, which went through the disposition process in 2012. It has been listed for
sale for over a year with no offers being made even with a reduced price of
$199,000. This parcel is long and narrow with only approximately 300 feet of
frontage on Cleveland making it difficult for redevelopment.
The second tract of land consists of six parcels along Olive Road that recently went
through the disposition process with no bids being received and is comprised on
approximately five acres. Five of these six parcels front Olive and are only 200 feet
in depth, making redevelopment also difficult.
Holladay owns property in this area and would like to assemble these properties with
theirs, thereby creating a larger and more developable property. Highlights of the
South Bend Redevelopment Commission
Rescheduled Regular Meeting — February 22, 2016
Page 7
agreement include: a purchase price of $115,000; an earnest deposit of $3,750; a
45 -day due diligence period; closing within 30 days after the due diligence period;
and the buyer paying all closing costs.
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
approved the Agreement to Buy and Sell Real Estate for Cleveland and Olive Road
Tracts with Holladay Property Services Midwest, Inc.
(10) Late addition to the Agenda: Ratification of the Third Amendment to the
Agreement to Buy and Sell Real Estate for the UniFirst Lot at Blackthorn
(Cohn & Cohn Investments)
Mr. Relos stated the Third Amendment is to increase the due diligence date to
March 21, 2016 for additional environmental work to be completed.
Upon a motion by Secretary Inks, seconded by Commissioner Ferlic the motion
carried 3 -0 (President Jones and Commissioner Downes absent), the Commission
ratified the Third Amendment to the Agreement to Buy and Sell Real Estate for the
UniFirst Lot at Blackthorn with Cohn & Cohn Investments.
6. PROGRESS REPORTS
Mr. Kobb reported there will be a confirming resolution on the residential for Lafayette Falls
going to the Common Council.
Mr. Relos updated the Commission on staff's approval of written commitments regarding
the rezoning of Blackthorn Corporate Park and the Airport Authority. The lots would be
rezoned as light industrial and would not be used for child care, educational, or bodies of
water. Additionally, the Building Department requested a sign permit and affidavit regarding
the Ignition Park monument sign to be erected in the median at Ignition Drive.
7. NEXT COMMISSION MEETING
Thursday, March 10, 2016, at 9:30 a.m.
8. ADJOURNMENT
The meeting was adjourned at 9:50 a.m.
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Aaron Kobb, Director of Economic Resources
Marcia I. Jones, President