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HomeMy WebLinkAbout2. Minutes 4/3/09SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 3, 2009 10:00 a.ln. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey Members Absent: Ms. Marcia Jones, President Legal Counsel: Mr. Lawrence Meteiver, Esq. Redevelopment Staff: Mr. Don Inks, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Jeff Gibney, Executive Director Ms. Ann Kolata, Economic Development Specialist Mr. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor"s Office Ms. Sara Stewart Uzelac Mr. Mark Seaman, Prism Ms. Jamie Loo, South Bend Tribune Mr. Nate Bosch, The Troyer Group Ms. Rita Kopala Ms. Linda Wolfson, Community Forum for Economic Dev 2. APPROVAL OF MINUTES A. Approval of Minutes of the Regular Meeting of Friday, March 20, 2009. Upon a 111otlon by MS. King, seconded by Mr. COMMISSION APPROVEDTHE MINUTES OF THE Downes and UnamlllOUSly Carl'led, the COn1r11rSSron REGULAR MEETING OF FRIDAY, MARCH 20, approved the Minutes of the Regular Meeting of 2009 Friday, March 20, 2009. South Bend Redevelopment Commission Regular Meeting -April 3, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted April 3, 2009 for approval. 305 FUND SBCDA BOND Rieth Riley Construction, Inc. 324 AIRPORT AEDA Ken Herceg K Associates, Inc Indiana Michigan Power Tri County News DHA Abonmarche Consultants Abonmarche DHA SBD Reprographics South Bend Parks & Recreation Dept Wightman Petrie 203,770.90 Michigan St. From Wayne St. N to Colfax 18,414.86 Studebaker Corridor Study 162.57 1010 N Bendix Dr. Unit Clinic 60.84 Coveleski Neighborhood Housing Block 10 216.00 Survey Work Mind Area 1,020.00 Mayflower Rd. Trunk Sanitary Sewer Study 900.00 Mayflower Rd. Trunk Sanitary Sewer Study 8,037.00 Transpo's Survey 89.36 Oliver Park & Ignition Park Housing 1,400.00 Tree Removed 1,950.00 Phase II Environmental Site Assessment 420 FUND TIF DISTRICT-SBCDA GENERAL Wightman Petrie Ampco System Parking AT&T CB Richard Rose Pest Solution CFH Landscape Services Watterud Inc. 422 FUND WEST WASHINGTON Indiana Michiaaa Power 110.00 Demolition of Gates Chevy World Building 1,946.30 St. Joseph St. & 225 S Main St. Parking Lot ~9 78 LaSalle Hotel Security Phone 250.35 Property CSB -City of SB 93.00 LaSalle Hotel 1,197.50 Clean up Fat Daddy's. Hill St. & Colfax Ave 395.00 420 S. Williams 10.41 520 W Wayne St 433 FUND REDEVELOPMENT ADMIN GENERAL Baker c4: Daniels 840.00 Legal Services 435 FUND DOUGLAS ROAD Baker & Daniels 619 BLACKTHORN GOLF COURSE Meadowbrook Golf Group, Inc. 420.00 Legal Services 8.000.00 Management Fee $ 259,313.87 2 South Bend Redevelopment Commission Regular Meeting -April 3, ?009 3. APPROVAL OF CLAIMS (CONT.) Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously cai-~•ied, the Commission approved the Claims submitted April 3, 2009, and ordered checks to be released. 4. COMMUNICATIONS A. Communication from LaSalle Square Steering Committee Mr. Inks noted that the Commission received a communication dated April 3, 2009 from the LaSalle Square Steering Committee. He read the letter into the record. Dear Redevelopment Commission Meaaabers, We care la•riting to regarest anonev be allocated to begin infi-ustructure improveanents foa• LuSalle Square us suggested in the LuSalle Syaaure Areu Redevelopment Plun (LSARP). On page 56 of the plCn1, One Of the,faa"St aL't1onS 1"eeOlnmeTlded 10 be Zlaldel"tClhC'n all I~ae fn".Sr flVe years a.S; "Extend the principal street grid fi-om the surrounding neighborhood into LuSalle Square, pro~~iding better coa7nection to the existing unc~m .fabric; .. As port of tlu~ Aiaport Economic Development Areu, LuSalle Squurc Jtus seen u, flurrv of activity prior to and since the adoption of the plan to 1"edel'e~Op the area. ~el'e~Oplnealt.C f0 date n7C~Llde: • A colluboralire effort he/~reen Memorial Hospital and St. Joseph Regional Mcdicul Center to operate the Bea~dix Phvsiciuns offices directly acrO.SS fYOa'17 the Sglaare • ~ • • T~7e 1"ellal'a9 Of 111 C' Ua'bCaa1 ~iLia'dea9 ll/~aa~~1e! tha.S yeaa" pro~•iding residents With access to fresh produce COMMISSION APPROVED THE CLAIMS SUBMITTED APRIL 3, 2009, AND ORDERED THE CHECKS TO BE RELEASED COMMUNICATION FROM LASALLE SQUARE STEERING COMMITTEE 3 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 crud other itc>>t~s • The plunr~ed rons7rzrction of ~u. four-story senior C'111~e11 Llpal"1171e111 COl11p~C'l • A 3, UUU square, fool expansion of ~lhe LaSalle Brunclz of the St. Joseph County Public Lib°a~.v Additionally, the City of~Soulh Bend bus acquired one of tlTrcc properties on Bendix Drive identified us the crrecr hc~.t~t suited, for retail and commercial devc~lolnuent. Hopefully 2009 ~1~ill see the aCgLl1S'111U11 Of 1~1e 1"el11al17117g hy0 pCll"Gels Yl'~11CF7 lyl~~ ulloti,i, murketiizg of the urea to begin in earnest. Given these developme~zts, the LuSulle Syuure Steering Committee desires to keep the moi7~entum moving, foi°~-yard to redevelop LuSulle Syuure and believes that is best ucco»~plished by initiating the process to improve llze ii7fi~astructure as the plan recomanends. Therefore, 1~°e respectfully request the Redevelopment Commission allocate the funds necessu~y to begin tJze process of extending the principal street grid into the square. Sincerely, The LuSullc Square Steering Comnaitlee Mr. Varner asked if additional infrastructure for LaSalle Square is planned for the Commission agenda this year. Mr. Inks responded that there is none in the 2009 AEDA budget for LaSalle Square. There is funding set aside for the continued acquisition of commercial properties on Bendix, but there were funds reserved in future years for inti-astructure. Staff can review this and see if it makes sense to make changes to the budget. 5. OLD BUSINESS There was no Old Business. THERE WAS NO OLD BUSINESS 4 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 6. NEW BUSINESS A. South Bend Central Development Area (1) Third Amendment to Lease for 127 Michigan St. (LePeep Restaurant) Ms. Jennings noted that LePeep of South Bend, Inc. has executed its Third Amendment to Lease with the Redevelopment Commission. The lease officially began November 1, 2008 and will terminate October 31, 2012. The base rent is $2,000 per month until October 3 I , 2009. Effective November 1, 2009 the tenant space rent will increase to $2,500 per month until the expiration of the lease term, October 31, 2012. In addition, LePeep will pay 6% of gross revenue that exceeds $6,000. These are the same teens that the Commission approved previously. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE THIRD MS. King and Unan1r710US1y Carl-led, the AMENDMENT TO LEASE FOR ~?~ IVIIC'HIGAN ST. Comrnrssron apps-OVed the Tlllrd Amendment (LEPEEP RESTAURANT) to Lease for 127 Michigan St. (LePeep Restaurant) (2) Commercial Property Management and Leasing Agreement for Redevelopment Retail (2009-2010) Ms. Jennings noted that CB Richard Ellis was awarded the bid for management of Redevelopment retail properties. An agreement began February 1, 2009 and terminates January 1, 2010. CB Richard Ellis" compensation for management of the properties is as follows: 117 E. Wayne St., $200 per month or 5% of the gross revenues, whichever is greater; 1 18-131 S. Michigan St. is $625 per month or $5% of the gross South Bend Redevelopment Commission Regular Meeting -April 3, 2009 revenues collected, whichever is greater; Leighton Plaza Courtyard at 130 S. Main St. will be a flat $75 per month. Staff recommends approval of the agreement. Mr. Varner asked if the agreement stipulates a fee for the leasing agent. Ms. Jennings responded that it does, at 8%. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously caiTied, the Commission approved the Commercial Property Management and Leasing Agreement for Redevelopment Retail (2009- 2010) B. Airport Economic Development Area (1) Resolution No. 2573 related to acquisition of property in the AEDA. (1500 blk S. Franklin) Mr. Relos noted that Resolution No. 2573 is related to property located northeast and adjacent to 411 W. Indiana. This property was added to the Airport Economic Development Area Acquisition List by Resolution No. 2456 on June 13, 2008. This approximately %-acre vacant lot is needed for the future site of the Transpo transportation center. The lot is owned by Engel Ventures. It lot is almost fully covered with a concrete slab and has an 8-foot metal fence around two sides. It is currently being used by Waste Management, though not owned by that company. Resolution No. 2573 sets the offering price for the property at $42,537.50, the average of two independent appraisals. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the COMMISSION APPROVED THE COMMERCIAL PROPERTY MANAGEMENT AND LEASING AGREEMENT FOR REDEVELOPMENT RETAIL (2009-2010) COMMISSION APPROVED RESOLUTION NO. 2573 RELATED TO ACQUISITION OF PROPERTY IN THE AEDA. (1500 BLK S. FRANKLIN) 6 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Commission approved Resolution No. 2573 related to acquisition of property in the AEDA. (1500 blk S. Franklin) (2) Resolution No. 2574 approving and accepting a counter offer for the acquisition of property in the AEDA. (1500 blk S. Franklin) Mr. Relos noted that Engel Ventures has submitted a counter offer in the amount of $50,000. After researching the value of the property and the depreciated value of its improvements, staff feels the counter offer is reasonable and recommends accepting it. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously cai-~•ied, the Commission approved Resolution No. 2574 approving and accepting a counter offer for the acquisition of property in the AEDA. (1500 blk S. Franklin) (3) Resolution No. 2575 related to acquisition of propert~~ in the AEDA. (1200 blk S. Franklin) Mr. Inks asked that item 6.B.(3) be tabled. Upon a motion by Ms. King, seconded by Mr. Alford and unanimously caiTied, the Commission tabled Resolution No. 2575 until the April 17, 2009 meeting. (4) Resolution No. 2576 approving and accepting a counter offer for the acquisition of property in the AEDA. (1200 blk S. Franklin) Mr. Inks asked that item 6.B.(4) be tabled. Upon a motion by Ms. King, seconded by COMMISSION APPROVED RESOLUTION NO. 2574 APPROVING AND ACCEPTING A COUNTER OFFER FOR THE ACQUISITION OF PROPERTY IN THE AEDA. (1500 BLK S. FRANKLIN) COMMISSION TABLED RESOLUTION NO. 2$75 UNTIL THE APRIL 17, 2009 MEETING COMMISSION TABLED RESOLUTION NO. 2576 UNTIL THE APRIL 17, 2009 MEETING South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Mr. Alford and unanimously can-ied, the Commission tabled Resolution No. 2576 until the April 17, 2009 meeting. (5) Real Estate Purchase and Site Work Agreement with the 1100 Corporation and the City of South Bend. Ms. Kolata noted that the property to be purchased by the Commission is 1100 Prairie Avenue, the fo~7ner Studebaker Foundry. The building contains approximately 450,000 square feet and is located on 19.19 acres. The property owner is The 1 l 00 Corporation -Don Nuner is the principal of this corporation. Underground Pipe & Valve, Inc. is the tenant. Terms of Purchase: • Commission will purchase the property for $1,625,000 with a credit of $129,560 for a site in the Oliver Industrial Park. The net purchase price will be $1,495,440. • The 1100 Corporation will purchase 6.32 acres in the Oliver Industrial Park at a price of $20,500 per acre. • Commission agrees to pay costs associated with ground compaction of the Oliver Industrial Park site. • The real estate closing on both properties will take place within two days of all conditions being met. The closing is to take place by July 1, 2009. • Underground Pipe & Valve will receive $205,000 in relocation payments once the move to the new location is complete. • The existing building will be leased back to The 1100 Corporation for $1 per month until the move to the new building is completed. • A Groundwater Monitoring Access South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Agreement (Exhibit G) will allow the Commission to monitor existing groundwater wells in the future. The l 100 Corporation will not seek real property tax abatement for the initial X6,000 square foot building at the Oliver Industrial Park site. The Commission agrees to provide crushed stone to be used as base for the storage yard area that will be asphalted. There is a large amount of crushed concrete at the former stamping plant site that will be provided. This should be sufficient but the Agreement provides that the Commission will pay for any additional crushed stone that is necessary for the base. The 1 100 Corporation will be allowed to excavate sand from an adjacent lot which is where the City's expansion of the existing retention pond will take place. Construction of the new building is to begin no later than August 1, ?009 and qualify for a Certificate of Completion within 12 months. Description of Project: • The 1 100 Corporation or a successor real estate holding company will construct a 36,000 s.f. building in the Oliver Industrial Park that will be leased to Underground Pipe and Valve, Inc. The building will be a single level pre- engineered steel building with two sections: a basic shop area and an office section. The majority of the shop area, 23,197 square feet, will be heated and cooled with the remaining shop area unheated. The office area will consist of 7,270 square feet. There will be 14 private offices with reception area, conference, workroom, break room, and South Bend Redevelopment Commission Regular Meeting -April 3, 2009 restroom uses. An asphalt parking area will sui-~•ound all four sides of the building with the area to the north capable of handling heavy truck parking. The entire site will be fenced. Decorative masonry pillars will be located on the south fence line. • The estimated cost of the new construction is just over $2,000,000. • Underground Pipe & Valve, Inc. has been in business since 1977. The company is a distributor of pipes, valves, and lift station equipment. Other product lines include; automatic meter reading systems, line stops, PVC water and sewer pipe, fire hydrants, water meters, manhole frames and covers, back flow preventers, couplings and grinders. The company has dist-ibution centers in Fort Wayne, Kalamazoo and Schererville. It has fifty employees, 27 of whom work at the Prairie Avenue location. Ms. Kolata noted that the purchase price of $1,625,000 was negotiated and includes compensation for the approximately five acres of heavy duty paving, additional fencing with masonry pillars on the south side of the property and landscaping that the City required for the storage yard. In addition, they have agreed to not request tax abatement for the construction of the 36,000 square foot building. A map showing the current and new location of Underground Pipe & Valve is attached to this report. Funds from the U.S. Department of Housing and Urban Development for the Studebaker/Oliver Development Project will be used for property acquisition and relocation. The Section l08 Loan has funds budgeted for this acquisition and relocation. 10 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Additional funds from HUD's Economic Development Initiative grant will be used for site prep at the Oliver site. The staff recommends approval of the Agreement. Underground Pipe R; Valve is a strong, locally owned business. This Agreement allows them to relocate to a nearby location in order to continue to serve their customers and provide tax base and jobs to the City of South Bend. Purchase of the former foundry will complete the Commission"s acquisition of former Studebaker buildings south of Sample Street. It will further the goals of City Plan by redeveloping a brownfield site and retaining an existing business within South Bend. Ms. Kolata noted that the Agreement the Commissioners have read is not in final form. Language concerning the enviromnental condition of the Oliver site is still being fine tuned. She asked that the Commission approve the agreement in concept. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission approved in concept the Real Estate Purchase and Site Work Agreement with 1 100 Corporation, subject to the final document being approved by legal counsel. C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area COMMISSION APPROVED IN CONCEPT THE REAL ESTATE PURCHASE AND SITE WORK AGREEMENT WITH 1 100 CORPORATION. SUB.IECT TO THE FINAL DOCUMENT BEING APPROVED BY LEGAL COUNSEL There was no business in the South Side South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area There was no business in the Douglas Road Economic Development Area. G. Ratification of Temporary Use Agreements Mr. Inks noted that staff has approved the request from Aids Ministries/Aids Assist to use the Wayne Sheet Garage for its annual Rooftop Rendezvous June 19, June 24 and Aug 21, 2009. That item needs to be ratified. In addition, Mr. Inks introduced Sara Uzelac for a presentation on her request to use Commission owned property at the west end of LaSalle Square for a community garden for a one year period. The property is roughly seven acres. Ms. Uzelac is coordinating the use of seventeen community gardens in the community this summer. Mr. Inks noted that the LaSalle Square Steering Committee has provided a letter of support. Mr. Inks noted that Ms. Uzelac has asked the Commission to provide materials in the amount costing 52,000 to bring water to the site. The Water Dept will provide the labor to enable that. Ms. King asked if the Commission would incur any liability with this use. Mr. Inks responded that any time the Commission allows its property to be used, there are documents signed protecting the Commission from liability. Ms. Spivey asked whether the Commission would 12 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 have any liability in regards to pesticides used, etc. Ms. Uzelac responded that pesticides will not be used. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission ratified Aids Ministries/Aids Assist"s use of the Wayne Street Garage for its annual Rooftop Rendezvous June 19, June 24 and Aug 2I, 2009. The Commission also approved the use of property at LaSalle Square for a community garden and authorized expending up to $2,000 for bringing water to the site. H. Other (1) Amended Resolution No. 2572 setting procedures for contracts for Property Related Services. Mr. Inks noted that the Commission passed a similar resolution earlier in the year, authorizing staff to approve certain types of routine contracts. The amendment adds David Relos to the list of staff that can approve such contracts. Upon a motion by Ms. King, seconded by Mr. Downes and unanimously carried, the Commission approved Resolution No. 2572 setting procedures for contracts for Property Related Services. 7. PROGRESS REPORTS Mr. Inks reported that the Common Council announced that the Council would again take up the tax abatement ordinance for review this year. Mr. Inks gave an update on TIF receipts. He noted that the County has not released any of the TIF funds collected in 2008. There has been no indication as to COMMISSION RATIFIED AIDS MINISTRIES/AIDS ASSIST USE OF THE WAYNE STREET GARAGE FOR ITS ANNUAL ROOFTOP RENDEZVOUS JUNE 19, JUNE 24 AND AUG 21.2009. THE COMMISSION ALSO APPROVED THE USE OF PROPERTY AT LASALLE SQUARE FOR A COMMUNITY GARDEN AND AUTHORIZED EXPENDING UP TO $2,000 FOR [3RINGING WATER TO THE SITE COMMISSION APPROVED RESOLUTION NO. 2572 SETTING PROCEDURES FOR CONTRACTS FOR PROPERTY RELATED SERVICES PROGRESS REPORTS 13 South Bend Redevelopment Connnission Regular Meeting -April 3, ?009 when they will be received. In the interim, staff has restricted all spending to what it has in cash. He said staff is not obligating ourselves beyond the city"s cash balances. He wanted the Commission to be aware that in the downtown, that will affect some projects. There is a significant cash balance in the Airport account, so there should be no affect there. Mr. Inks also reported that Press Ganey has sold its land. The final closing amount was $406,469.80. 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NexT CoMmissioN MEeTiNc scheduled for Friday, April 17, 2009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the A~~ouRNMervT Redevelopment Commission, Ms. King made a motion that the meeting be adjourned. Mr. Downes seconded the motion and the meeting was adjourned at 10:55 a.m. Donald E. Inks, Director EXECUTIVE SESSION April 3, 2009 The South Bend Redevelopment Commission met in Executive Session on Friday, April 3, ?009, at 9:15 a.m. The meeting was held in Room 1200 County-City Building, 227 West Jefferson, South Bend, Indiana, for the purposes specified in LC. 5-14-1.5-6.1(b)(2)(D). Commissioner's Present: David Varner, Vice President; Nancy King, Secretary, Greg Downes, Donald Alford, Stephanie Spivey. Others Present: Jeff Gibney, Executive Director, Community & Economic Development, Don Inks, Director, Economic Development, David Relos, Jennifer 14 South Bend Redevelopment Commission Regular Meeting -April 3, 2009 Laurent, and Ann Kolata. The Commission certifies that no topic was discussed other than the subject matter specified in the Public Notice. The Executive Session was adjourned at 10:00 a.m. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Primer ;A'umr and ~iNr South Bend Redevelopment Commission 15