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HomeMy WebLinkAbout2. Minutes 3/6/09 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 6, 2009 10:00 aan. 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 Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Ms. Jennifer Laurent, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mayor Stephen Luecke Mr. Tom Price, Mayor's Office Mr. Jeffrey Gibney, Community & Economic Development Mr. James Kapsa, South Bend Community School Corp. Mr. John Strauss, South Bend Community School Corp. Mr. John Kennedy, South Bend Community School Corp. Mr. Roger Parent, South Bend Community School Board Mr. William Sniadecki, South Bend Community School Board Mr. Mark Miller, Grubb & Ellis Ms. Ann Puzzello, South Bend Common Council Rev. Timothy Rouse, South Bend Common Council Mr. Henry Davis, South Bend Common Council Mr. Paul Laskowski, Chamber of Commerce Mr. Phil Damico, Chamber of Commerce Mr. Paul Phair, Holladay Corp. Mr. Kenn Andrews, Treadstone Ms. Catherine Hostetler, Historic Preservation Commission Mr. Richard Nussbaum Ms. Jamie Loo, South Bend Tribune Mr. Don Schoenfeld, WNDU-TV South Bend Redevelopment Commission Regular Meeting -March 6, 2009 3. ROLL CALL (CONT.) 2. APPROVAL OF MINUTES Ms. Rita Kopala Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Ms. Amy Hill, South Bend Silverhawks Ms. Oletha Jones Mr. Troy Warner Mr. Mark Seaman Mr. Mark Piasecki Ms. Donna Anderson A. Approval of Minutes of the Regular Meeting of Friday, February 20, 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 20, 2009. 3. APPROVAL OF CLAIMS COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, FEBRUARY 20, 2009 Redevelopment Commission Claims submitted March 6, 2009 for approval. 324 AIRPORT AEDA Ken Herceg & Associates, Inc. 66,000.00 Indiana Michigan Power 7.06 Meridian Title 75,036.49 Sopko, Nussbaum, Inabnit &Kaczmarek 3,780.00 The Blue Waters Group 42,310.00 420 FUND TIF DISTRICT-SBCDA GENERAL Studebaker Corridor Study 501 Wenger SPRK, Sys/Johnson Acquisition of 614 Arnold St Legal Service Marketing services AT & T 29,78 LaSalle Hotel Security Phone JJR 7,500.00 East Bank Master Plan Ph 2 Rose Pest Solution 93.00 LaSalle Hotel Pest Control Sopko, Nussbaum, Inabnit R 1,788,00 Legal Service 422 FUND WEST WASHINGTON Sopko. Nussbaum, Inabnit &Kaczmarek Indiana Michigan Power 435 FUND DOUGLAS ROAD Sopko, Nussbaum, Inabnit &Kaczmarek 315.00 Legal Service 10.96 520 W Wayne St. 112.50 Legal Service 2 South Bend Redevelopment Commission Regular Meeting-March 6, 2009 3. APPROVAL OF CLAIMS (CONT.) 454 FUND AEDA/UEZ SPECIAL ZONE Project Impact -South Bend. Inc. 155,77 ] .00 January & February payments on contract $ 352,753.79 Upon a motion by Mr. Downes seconded by Ms. King COMMISSION APPROVED THE CLAIMS and unanimously carried, the Commission approved the suBMITTED MARCH 6, 2009, AND ORDERED THE Claims submitted March 6, 2009, and ordered checks to CHECKS To BE RELEASED be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS Mr. Inks asked that Items 6.C.(3) and 6.C.(4) be moved up on the agenda. He explained that staff who will be presenting must leave fora 10:15 meeting related to property acquisitions in Ignition Park. There was no objection and the items were so moved. C. South Bend Central Development Area (3) Authorization for Redevelopment Director to sign final site plat of Main and Western Development Block. Mr. Schalliol noted that in 1973 the City of South Bend acquired property in the Main/Western development block, bounded by Main, Western, Michigan, St. Joseph and Monroe Streets. In 1995 the Commission sold off a tract of land for development in the northeast quadrant where the building was used for the Bankruptcy Court. In 2002 the Commission acquired additional property in THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continues... the block for the purpose of constructing the new South Bend Community School Corporation office which ultimately located elsewhere. No new development has occun-ed in the block for many years. With ownership changes for the McNease property and Inwoods property, the opportunity has presented itself to replat the block in cooperation with the two other property owners on the block. The Commission owns nine parcels, largely under a parking lot. The owners of the property on which the Bankruptcy Court is located own five parcels. The remaining property owner also owns five parcels. A new property plat has been prepared for the block resulting in three parcels, each owned by a different owner. This replat will resolve longstanding ownership issues and allow for the marketing of a development site. Staff requests the Commission authorize Donald Inks, Redevelopment Director, to sign the final plat and allo~~ staff to finalize this transaction. Ms. Jones asked about the division of land. Mr. Schalliol responded that the Bankruptcy Court will get a little more land, including some in the right-of--way in front of their building, the owner of Inwoods/McNease property will get a little more land, and the Commission will lose a little, but nothing significant. Tlie additional land provided to the Bankruptcy Court will allow them to make security improvements around their building and remain in the downtown. The 4 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (3) continued... Commission's site will be .75 acres, a good buildable site. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously can-ied, the Commission authorized the Redevelopment Director to sign the final site plat of the Main and Western Development Block. (4) Proposal for professional services related to reuse of the former Richey's Radiator building. Mr. Schalliol noted that in 2008, the Redevelopment Commission purchased the former Richey's Radiator building located at the southeast corner of Western and William as part of a master property acquisition strategy for the Coveleski Park Neighborhood Planning Area. The original intention of staff upon acquisition of the property was demolition of the structure to incorporate the land into a future development site in the park area. One of the short tei•~n goals identified in the master planning process for proposed improvements to Coveleski Stadium was the creation of a baseball training center for use by the home and away teams during the baseball season. After some talks between city and Silver Hawks staff, a concept plan was developed which uses the former Richey's building for this training use. COMMISSION AUTHORIZED THE REDEVELOPMENT DIRECTOR TO SIGN FINAL SITE PLAT OF MAIN & WESTERN DEVELOPMENT BLOCK Wighrinan Petrie has submitted a proposal in South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... cooperation with Forum Architects to develop a plan and prints for the renovation of the Richey's building into a baseball training center. On the inside, the building would be cleaned, stripped and converted to a training center that would include a batting cage system and a bullpen set-up. Anew restroom and storage room/office would also be added. On the outside, the building would be repainted, the hardscape would be reduced and landscaping would be added. Forum Architects designed the similar facility at Notre Dame. A key feature of the building that will remain will be large windows and an overhead door which will allow viewers to watch from the outside when ball teams or other groups are practicing. The intended use of this building will not only be for the Silver Hawks and their opponents, but for the larger community as additional indoor training space for local and regional teams. The Silver Hawks staff will manage the facility and work with community groups to schedule the space as they do with the use of the stadium. The proposal is for the design and development of the facility into a baseball training center facility. The total fee for the design is $21,500.00. This project will be a key first step into putting new development back into the Coveleski Park area and will be a good catalyst for future development opportunities. Staff requests Commission approval. 6 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... Mr. Varner asked for an estimate of the project cost for renovating the building and who would pay for the improvements. Mr. Schalliol responded that staff expects the total project cost to be less than $100,000. The city would pay for it. The city would enter into a management agreement with the Silver Hawks. The facility will need to be self-supporting, so any revenue would be used for utilities, etc., first. Ms. Jones objected to the tacit approval implied if the city pays for the design work. She indicated she would rather see the Silver Hawks pay for design, and then staff work out a long tei•~n lease agreement that would take those costs into consideration. Mr. Schalliol responded that staff and the Silver Hawks have discussed an arrangement like that, but construction of such a facility was part of the HOK planning, at a cost of millions of dollars. This solution seemed a minor expense in relation to the potential cost of a new facility. Ms. Jones said that she was not opposed to the city paying for broad design for an area, but thinks it is a bad precedent to set that we would pay for the design of an individual building intended for another's use. Mr. Schalliol responded that the city will retain ownership of the building. He thought that would keep it from setting the kind of precedent she was referring to. Mr. Downes announced that he will not vote 7 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... on this item. He disclosed that he is one of many investors in the South Bend Professional Baseball LLC. Mr. Gibney asked if Mr. Schalliol knew what potential users might also make use of the facility. Mr. Schalliol responded that the Silver Hawks have been talking to the owners of the adjacent Monroe Circle complex for youth baseball activities. Other high school teams use the Cove and could also benefit from this facility year round. Mr. Varner asked where the funds would come from for this expense. Mr. Schalliol responded they would be taken from the South Bend Central Development Area TIF. Ms. Jones asked if the decision has been made to not demolish the building, would there be other users who would want the building. Mr. Schalliol responded that no one has inquired about it, and there is a building for lease across the street that has had no takers. Mr. Schalliol noted that some of the scope of services proposed are environmental testing that the city would eventually pay for. Mr. Gibney predicted that this building would not be used for this purpose for more than five years. The HOK plan is for commercial development along the Western Avenue corridor and Lafayette Street coi-~•idor. That is why we anticipated South Bend Redevelopment Commission Regular Meeting -March 6, ?009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (4) continued... demolishing the building. However, it seems like a modest amount of money for an adaptive reuse in the interim. As soon as we have the opportunity to develop that block as part of the HOK plan, that building will come down. Ms. Jones encouraged staff to be extremely proactive about the reuse of that building as a public facility during those 5 years. Ms. King made a motion to approve the proposal for professional services related to reuse of former Richey"s Radiator building. There was no second. The motion died. Mr. Varner and Mr. Alford explained their reluctance. They do not like spending $150,000 on something that will come down in three years. A. Tax Abatements (1) Resolution No. 2564 approving an application for personal property tax deduction for property, located at 445 North Sheridan Street in the Airport Economic Development Area. (Treadstone LLC AEDA) Mr. Mathia gave the staff report on the project. Treadstone, LLC recycles solid rubber tires into rubber mulch of various sizes and weights. Ninety percent of their production is a large premium size mulch that is used primarily for children's South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... playgrounds and for landscaping. The equipment to be purchased is a fire shredding machine. The new machine will double the company's production capacity. This relatively new company has been using three prototype machines to manufacture its product since it began, two years ago. The prototypes are not built to withstand the rigors of the company's cur•ent production schedule. The new machine is stronger and will ease the burden on the three prototypes. In fact, the new machine is based on a design that Treadstone developed and provided to the machine manufacturer. The estimated cost of the new machine is $200,000. Based on the estimated cost of machinery, total taxes to be abated during the five-year abatement period are estimated at $7,815. Total additional taxes to be paid as a result of the project during the five-year abatement period are estimated at $6,311. It is estimated that the project will create three new, permanent full-time positions with an annual payroll $60,000. The project will also maintain four existing permanent full- time positions and one existing part-time position with a total annual payroll of $160,000. Treadstone, LLC, has not received any previous tax abatements. The property is properly zoned for the proposed project. The property is located in the Airport Economic 10 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) A. Tax Abatements (1) continued... Development Area, which is a Tax Incremental Allocation Area; therefore, the petition for personal property tax deduction must first be approved by the South Bend Redevelopment Commission. The project meets the qualifications for afive-year personal under the tax abatement ordinance. Mr. Andrews doesn't believe that anyone else in the world makes the product this company does. They ve had to develop their own processes and machines. Sales have increased three times over the last year. They are opening their second location in Lancaster, Pennsylvania. Only forklift tires are recyclable, because they don't have steel belts in them. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously can•ied, the Conmlission approved Resolution No. 2564 approving an application for personal property tax deduction foi• property located at 445 North Sheridan Street in the Airport Economic Development Area. (Treadstone LLC AEDA) B. Other (1) Resolution No. 2570 authorizing the use of certain tax increment revenues for the reimbursement of the South Bend Major Moves Fund. (Auten Road Connector Project, 51270 Mayflower Rd) COMMISSION APPROVED RESOLUTION NO. 2564 APPROVING AN APPLICATION FOR PERSONAL PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 445 NORTH SHERIDAN STREET IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. (TREADSTONE LLC AEDA) Mr. Inks explained that the Board of Public South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) B. Other (1) continued... Works will be acquiring property at 51270 Mayflower Road. In March 2008 the Redevelopment Commission approved a letter agreement with Holladay Properties to acquire right of way for the Auten Road Connector. Acquisition at that time was spurred by the property being voluntarily put up for sale. The purchase price was $280,000 for the land, a house and out- building. That seemed a reasonable purchase price and the purchase avoided later having to go through an adversarial acquisition. The letter agreement stipulated that Redevelopment could not use TIF to acquire the property because it was not then in the city limits nor the TIF area. Accordingly, Holladay Properties was to acquire the property and go through a voluntary annexation. Once that was done the redevelopment area would be expanded to include the property and Redevelopment would proceed to acquire it fi-om Holladay Properties for an amount not to exceed $300,000, which was the initial cost plus transaction costs and a small amount for holding. Subsequent to that letter agreement new TIF legislation was enacted limiting Redevelopment"s ability to expand the TIF area without going through a much more costly and time intensive process. However, the new legislation does allow Redevelopment to reimburse the city for local public improvements connected to the TIF area. Right-of--way is considered a local public improvement, eligible for 12 South Bend Redevelopment Connnission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) B. Other (1) continued... reimbursement. Redevelopment will not be taking title to the property. But we would be solely reimbursing the city for its right-of- way costs. The Auten Connector is part of the planned transportation improvements for Portage Prairie, a planned $300,000,000 private mixed use development. The South Bend Common Council has appropriated Major Moves funds for the acquisition of this property and has approved a specific acquisition by the Board of Public Works. Staff recommends approving the reimbursement of $300,000 to the City of South Bend, plus up to $50,000 of transaction costs. Mr. Inks noted that there is one major property owner. We are not ready to pursue any additional acquisition at this time on the Auten Connector, unless the property becomes available on the open market. We think there is need for further development of Portage Prairie before we would go ahead with the transportation plan. However, we would try to work with that property owner as much as possible as we get ready to put the road through. We also realize there is an historic property at the intersection of Portage and Auten. We would expect to avoid that property as we do the road project. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. ?570 authorizing the use of certain tax increment revenues for the reimbursement of the South 13 COMMISSION APPROVED RESOLUTION NO. 2570 AUTHORIZING THE USE OF CERTAIN TAX INCREMENT REVENUES FOR THE REIMBURSEMENT OF THE SOUTH BEND MAJOR MOVES FUND. (AUTEN ROAD CONNECTOR PROJECT, S 1270 MAYFLOWER RD) South Bend Redevelopment Connnission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) B. Other (I) continued... Bend Major Moves Fund. (Auten Road Connector Project, 51270 Mayflower Rd) (2) Resolution No. 2566 approving and authorizing the execution of a Master Agency Agreement with the Board of Public Works relating to 2009 Projects. Mr. Inks noted that this stems from a meeting earlier this year where the Commission appropriated all of the 2008 TIF funds. There was a commitment made to the Commission that staff would come back and get specific approval for each project as it moved forward. One way to keep track of that is to have the Master Agency Agreement with the Board of Public Works so that every project that goes to the Board of Public Works on behalf of the Commission would be added to this Master Agency Agreement. Those addendums to this agreement would all go through the Redevelopment Commission, so we will have a listing in one place of all the projects that that have been approved by the Commission and assigned to the Board of Public Works to implement. Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously can-ied, the Commission approved Resolution No. 2566 approving and authorizing the execution of a Master Agency Agreement with the Board of Public Works relating to 2009 Projects. COMMISSION APPROVED RESOLUTION NO. 2566 APPROVING AND AUTHORIZING THE EXECUTION OF A MASTER AGENCY AGREEMENT WITH THE BOARD OF PUBLIC WORKS RELATING TO 2009 PROJECTS 14 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (Cont.) (1) Resolution No. 2565 authorizing disposition of interest in real estate located in the South Bend Central Development Area. (648 Columbia St.) Mr. Inks noted that Item 6.C.(1) and 6.C.(5) are the same item. They are combined here under the agenda title that was 6.C.(5). In 2001 the Redevelopment Commission successfully worked with Press Ganey (the operating entity) to retain and grow the company at its current location. As a part of the Redevelopment Agreement entered into by Press Ganey and the Redevelopment Commission, property at 348 Columbia was to be purchased. Ganey Press Real Estate purchased the building occupying the site and the Redevelopment Commission acquired the land on which the building was located. Redevelopment, after completing the statutory disposition process, entered into a long term Ground Lease (49 years with two 25 year renewal options) with Ganey Press Real Estate for the use of the land. The Redevelopment Agreement and Ground Lease both anticipated a future sale of the property and established a framework for that sale to take place. The Redevelopment Commission has two options: The Ground Lease can be assigned to the new owner of the property; or the Redevelopment Commission can include its property in the sale and receive payment from the sale proceeds based on a formula established in the Ground Lease. The first $1,150,000, after deducting expenses of the sale, goes to Ganey Press Real Estate. The next $400,000 15 South Bend Redevelopment Commission Regular Meeting -March 6, ?009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (Cont.) (1) continued... goes to Redevelopment, and any remaining proceeds are split equally between Redevelopment and Caney Press Real Estate. Caney Press Real Estate has sent the attached letter indicating a sale maybe imminent, and would include the property at 348 Columbia, along with 3 other properties. Total sale proceeds, less the costs of the sale, would be allocated to each property based on square footage of building improvements. Staff recommends favorable consideration by the Redevelopment Commission for the sale of 348 Columbia and the allocation of sale proceeds as proposed. Mr. Inks noted that under this scenario the Redevelopment Commission would expect to receive $400,000 or a little more. Mr. Varner asked if the Commission should set a minimum sales price. Mr. Inks responded that the two options for the Commission were to participate in the sale or to assign the lease. When staff reviewed the options. there didn't seem to be any value to assigning the lease ($10/year) and the conditions of the sale have already been set forth. Ms. Jones asked if the sales price is known. Mr. Miller, Grubb & Ellis, responded that as real estate agent they are still in the due diligence phase. The sales price has been established in a contract, but could still 16 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (Cont.) (1) continued... change, though that is unlikely. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2565 authorizing disposition of interest in real estate located in the South Bend Central Development Area. (648 Columbia St.) (2) Proposal for Architectural Services for 101 N. Michigan St. Ms. Laurent noted that staff is recommending an extension to the contract with Architecture Design Group (ADG) for design and construction coordination sewices through the completion of the American Trust facade restoration project. The original basis of compensation, approved by the Commission on July 20, 2006, was 11 % of the cost of construction, not to exceed $70,000. The extension of the contract commits additional hourly compensation not to exceed $7,000 to see us through the final two months of the construction phase. The Commission's original teens contemplated only 12 months of engagement with ADG; however the National Park Service review of plans that was required for the Rehabilitation Tax Credits lengthened the predevelopment phase considerably, and was a time-intensive portion of the project for ADG. To their credit, the application was ultimately 100% successful, and once underway, ADG and Majority Builders have COMMISSION APPROVED RESOLUTION NO. 2565 AUTHORIZING DISPOSITION OF INTEREST IN REAL ESTATE LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA. (648 COLUMBIA ST.~ 17 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) C. South Bend Central Development Area (Cont.) (2) continued... kept this project moving as expediently as they could, with superior attention to construction detail and under budget. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved the proposal from Architectural Design Group for additional services for 101 N. Michigan St. (6) Resolution No. 2568 approving and authorizing the execution of an Addendum to the Master Agency Agreement (WNIT Facade Improvement Project) Mr. Inks noted that after approving the Master Agency Agreement for 2009 projects, this is a cleanup item. The Commission took action earlier this year to approve an agency agreement with the Board of Public Works for the WNIT Facade Improvement Project. This makes sure this project gets added to the Master Agency Agreement. Item 6.H.(1) does the same for the Douglas Road Improvements. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2568 approving and authorizing the execution of an Addendum to the Master Agency Agreement (WNIT Facade Improvement Project) COMMISSION APPROVED THE PROPOSAL FROM ARCHITECTURAL DESIGN GROUP FOR ADDITIONAL SERVICES FOR l O l N. MICHIGAN ST. COMMISSION APPROVED RESOLUTION NO. 2568 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (WNIT FACADE IMPROVEMENT PROJECT) 18 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. Mr. Inks noted that the school corporation DiscussioN of NEw TECH HicH SCHOOL would like to open New Tech High School in August 2009. In order to facilitate that timeline, the Commission is asked to consider the following: approve $1.3 million for the design and construction related to establishing a New Tech High School, approving the use of those funds for the Marycrest Building, or another suitable site in the Airport Economic Development Area, subject to Redevelopment approval of a site other than Marycrest; and approve an Agency Agreement with the Board of Public Works to can-y out the design and construction on the Commission's behalf. By taking these actions the Redevelopment Commission will be demonstrating its support for the project and allowing the project to proceed for this school year, subject to the School Board making a final decision. Mr. Inks noted that the reason this item is coming forward at this time is that the project has yet to be designed, and must be bid out by the Board of Public Works. There needs to be sufficient time for construction after that. Based on a preliminary schedule, put together by the Engineering Department, that process would be at least nineteen weeks. There are only twenty-one weeks until August. That is a very tight schedule to be ready for the 2009 school year. Mr. Kapsa made a presentation on the 19 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. project. Mr. Kapsa distributed a press release fi•om the State Superintendent praising three of the six tech high schools in Indiana for their improved graduation rates. The South Bend Community School Corporation intends to copy those models. The New Tech model focuses on small student to teacher ratios that provide for more teacher-student interaction, one computer per student, and uses aproject-based approach to learning. While curriculum is based on state standards, project assignments span multiple subjects and incorporate new technology skills such as web sites and multi-media presentations. The first major step in the process is to acquire a building. The school corporation has seen declining resources in recent years and cannot start this high school on its own. They would like to use Airport Economic Development Area (AEDA) TIF funds to renovate a building, and hope to start 100 students in August. Mr. Laskowski, co-chair of the New Tech study committee with Mr. Kapsa, noted the importance of an educated workforce to growing business in the community. Graduation rates have been dropping in traditional schools. We need to address that problem. The business community, along with the school corporation, has been looking at other models to accomplish that. The New Tech model started in 1990 in California, driven by the business community there. The study committee visited many New Tech 20 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. high schools and were amazed at the level of engagement and enthusiasm in those schools. Mr. Parent referred to the many projects that he was involved in across South Bend over the years. He said that not one of them would have moved forward if they had insisted on having answers to all the questions ahead of time. Mr. Sniadecki noted that he brought the concept of New Tech High School to the school board several years ago. He's in favor of New Tech High, but not at the Marycrest building. He is concerned about safety of children and teachers at that location, as well as concerned about asbestos in the building. The TIF funds would not be going to the school corporation, but to the owner of the building, South Bend Heritage Foundation, or a future owner. He'd like to see the building turned over to the school corporation now, instead of in two years. He also doesn't think there is enough time to train teachers in this new method by August. He favors moving more slowly and beginning in 2010. For the public record, Ms. King asked about funding for the entire initiative. What is already raised for the 2009/2010 budget? How much more needs to be raised? How will future years be funded? Why does this need to start this year? Mr. Laskowski responded that there is a high 21 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. cost to startup because the New Tech Foundation charges for the training they do for the teachers and for working with local staff on the curriculum. The school corporation hasn't raised money yet. They need to secure this commitment for a building before they can start making presentations for other public support. If they can't get it going for August 2009, they'll work toward August 2010. It"s a fine project for students and the community. Mr. Kapsa noted that one reason for wanting to begin this year is that one individual has pledged $450,000 toward the project if it starts this year. Another individual has pledged $150,000 toward the project. Those commitments are being used for matches as they apply for a grant from the Lilly Foundation. Mr. Alford expressed his enthusiasm for the project. He asked what criteria would be used to select the 100 students for this year. Mr. Kapsa responded that it is not a gifted and talented program. They will take applications from anyone in the community, but will be looking for students who can work independently. New Tech High School will not have all the programs that are available at the other high schools, so there will be some trade-offs for those who attend there. Ms. Jones asked if the criteria would be similar to that for LaSalle Academy. Dr. 22 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. Wilson responded that it would not be. This will be much broader, more like what is used for high school magnet programs---open to any student interested in participating. Mr. Kapsa said that in the models they visited, many of the students that participated were students who were bight, but had been turned off by traditional schools. Mayor Luecke said that the students he observed were representative of the student body as a whole. It won't be an exclusive school. Mayor Luecke addressed the question of why it is appropriate to use TIF funds for a school. First is shows a great partnership between city and school corporation. Practically, over many years, TIF districts have siphoned funds away from schools. It seems like a fair payback. Mayor Luecke noted that the Redevelopment Commission is not expected to decide whether the New Tech High School will open in August 2009. The school corporation has decided to try to accomplish that. They will proceed down that timeline until they reach an obstacle that prohibits it. If that happens, they will change their focus to opening in August 2010. The Commission is being asked to make its commitment to help the school corporation move toward opening August 2009. Mr. Damico wanted to address questions as to the appropriateness of the Marycrest Building for the school. Preliminary reports 23 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. have shown no sign of mold; asbestos is not a problem; and there has not been a police report for the Marycrest Building for at least fifteen years. He also said the location should enable the school to draw from all socioeconomic groups. Mr. Downes asked when the environmental surveys will be complete. Mr. Damico responded that the only outstanding one is the air quality, which should be complete in two weeks. Mr. Damico also responded to Mr. Sniadecki's concern about ownership of the Marycrest Building. The committee is working to resolve those. They intend to work to smoothly transition the tenants who have been in the building. The third and fourth floors are completely vacant and could be used immediately. Ms. Spivey asked whether the school corporation would have to repay TIF funds that have been used to date, if it should decide to use a building outside the AEDA TIF area. Mr. Inks responded that the proposal before the Commission today does not anticipate repayment of funds if a different building is chosen. Mr. Downes asked about the time needed to train staff for these new methods. Mr. Laskowski responded that one of the beauties of the New Tech model is that there are forty such schools already. Others have done it 24 South Bend Redevelopment Connnission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. and can teach us how. He compared it to starting a franchised business. People from the New Tech Foundation come here to train our teachers and help start up the school. They then provide ongoing support and training. Dr. Wilson noted that the teachers who will be selected will be making a commitment to spending their summer in intensive training. Project based learning is already being used in some of the classrooms in South Bend. The New Tech Foundation supplies a library of project based learning activities that we can use, and we are also expected to contribute to that library. Mr. Varner noted that the South Bend Common Council has indicated that it believes the fast track to opening this August short changes the community on information it wants and needs. Mr. Varner noted that there is a long list of requests for using TIF funds to reimburse the city for expenses it cannot fund under the circuit breaker property tax cap. He is not in favor of using TIF funds for New Tech High, though he thinks the establishment of a New Tech High is a good idea and hopes it can be implemented and is a success. Mr. Downes said that he, respectfully, takes the opposite view. He cannot think of a better use for tax dollars. As the "Redevelopment" Commission. this body is 25 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. charged with redeveloping, buildings, areas, and properties that need redevelopment. New Tech High has the potential to redevelop not only this building, but the whole Western Ave. corridor. Secondly, at- risk students may well be helped by this type of education. Non-traditional students, students who have not succeeded in traditional classrooms. He cannot think of a better use of redevelopment than this. Also, Mr. Downes noted that opening a new business always has risk. But in the large scheme of things, this appears to be very low risk. Mr. Gibney pointed out that the City of South Bend spends approximately 75% of its budget on public safety (police and fire), about 20% on public works. TIF dollars are the only dollars that we have for our local economic development stimulus package. The Common Council wants to siphon off more TIF dollars for public safety, etc. He said we need to spend a much larger percentage of city budgets, TIF budgets, on education, job training and economic development. Ms. King noted that there are huge challenges that this community is going to have to meet if we are going to be a sustainable, healthy community. Most of that resides in what we do in educating our youth, particularly the children that stay in our community. This is the first time she has 26 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. seen those responsible for education partner with business and the city. That is the only way to educate our children. The school board cannot remain separate from the rest of the community, and the community cannot afford to not be in the education business. We have to find ways to work together. This is going to take all of our skills, and a level of trust we have not had toward each other in the past. She is in favor of this project. Ms. Spivey agreed. Though she was one of the school board members who voted against moving forward with New Tech High at the Marycrest Building, she wants the Commission and the city to say yes to education, to the village concept. It takes us all. Education does directly impact economic development. Rev. Rouse noted that the Economic Development Committee of the Common Council has asked for all the interested parties to meet to discuss the outstanding issues. One of the reasons the school corporation is here this morning is because the Indiana House passed HB 1001. He asked the Commission to be very cautious. In the post-HB 1001 environment, the city's TIF district money maybe needed for city operations. He supports the New Tech High concept and the idea of working collaboratively with the school corporation for the betterment of our children. The Council wants to give due diligence to the process, especially in the post-HB 1001 27 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. environment. Ms. Jones asked Rev. Rouse if he was asking the Commission to wait on its decision. Rev. Rouse said that he was. Mr. Varner tried to give a quick TIF lesson. All of the taxes from new development in TIF districts stays in TIF districts. TIF districts get unbalanced and the city doesn't get the money it needs to run the city. We have to find a way to creatively use TIF wisely. Ms. Puzzello said she is not in favor of rushing to commit TIF funds for this project before the Common Council weighs its priorities for spending its limited resources. She asked the Commission to continue this item. Ms. Jones noted that as a Council appointment to the Redevelopment Commission, she feels a responsibility to strongly consider the Council's wishes when she votes on an item it has such a strong opinion on. She is very interested in education. Education gives you economic freedom which allows you to live where you want to live, work where you want to work, and be what you want to be. Economic opportunity doesn't happen without quality education. That is the core of her belief system. When the Commission expanded the AEDA to include LaSalle Square and the Hurwich/Marycrest area, it made a 28 South Bend Redevelopment Connnission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) D. Airport Economic Development Area (1) Discussion of New Tech High School. commitment to the West Side to try to develop the West Side. This is on the West Side. She is, however, concerned about rushing into this. She does not believe two weeks would ruin the 2009 opportunity for this project if that extra time would allow for better collaboration between the various entities trying to partner in it. (2) Resolution No. 2569 approving and authorizing the execution of an Addendum to the Master Agency Agreement (New Tech High) Mr. Inks noted that Resolution No. 2569 specifically approves the use of TIF funds for renovation of the Marycrest Building. If the Marycrest Building is not used for New Tech High, the Commission must approve the use of funds for another building. In Exhibit A to the Agency Agreement the project description says "located in the Marycrest Building or other suitable location within the Airport Economic Development Area'. That is an e1TOr. The words "other suitable location" need to be struck from that description. Mr. Downes made a motion to approve Resolution No. 2569 as amended. Ms. King seconded the motion. The vote was three in favor. Mr. Varner and Ms. Jones voted nay. The motion can-ied. COMMISSION APPROVED RESOLUTION NO. 2569, AS AMENDED, APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT (NEW TECH HIGH) 29 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 6. NEW BUSINESS (CONT.) E. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. F. South Side Development Area There was no business in the South Side Development Area. G. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. G. Douglas Road Economic Development Area (1) Resolution No. 2567 approving and authorizing the execution of an Addendum to the Master Agency Agreement (Douglas Road Widening) Upon a motion by Mr•. Downes, seconded by Ms. King and unanimously carried, the Commission approved Resolution No. 2567 approving and authorizing the execution of an Addendum to the Master Agency Agreement. (Douglas Road Widening) H. Ratification of Temporary Use Agreements Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission ratified the Temporary Use Agreement with Wightman Petrie for access to several properties in the Aiipoi-t Economic Development Area to perform soil borings during the month of March 2009. COMMISSION APPROVED RESOLUTION NO. 2567 APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDENDUM TO THE MASTER AGENCY AGREEMENT. (DOUGLAS ROAD WIDENING) COMMISSION RATIFIED THE TEMPORARY USE AGREEMENT WITH WIGHTMAN PETRIE FOR ACCESS TO SEVERAL PROPERTIES IN THE AIRPORT ECONOMIC DEVELOPMENT AREA TO PERFORM SOIL BORINGS DURING THE MONTH OF MARCH 2009 30 South Bend Redevelopment Commission Regular Meeting -March 6, 2009 7. PROGRESS REPORTS Mr. Inks reported that we received the annual status PROGRESS RE-~oRTs report from A J Wright. As of November 30, 2008 their jobs had increased from 313 jobs in 2007 to 470 jobs in 2008. That is still not enough to avoid a penalty. They have paid the $55,000 penalty. Mr. Inks also reported that Project Impact had its Boot Camp graduation with 81 people. The testimonials were very impressive and moving. The graduation was a very impressive event. Those 81 people will be starting the twelve-week training on March 16. Project Impact will make a presentation to the Commission in April. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, March 20, 2009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 1 1:55 a.m. Donald E. Inks, Director 31