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HomeMy WebLinkAbout2. Minutes 9/4/09 MeetingSOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 4, 2009 10:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Ms. Stephanie Spivey 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. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor's Office Mr. Hardie Blake, Project hnpact Mr. James Summers, Project Impact Dr. Thomas Merluzzi, Notre Dame Ms. Beth Leonard Mr. Jeff Parrott, South Bend Tribune Ms. GlendaRae Hernandez Ms. Linda Wolfson, Community Forum for Economic Dev Ms. Mo Miller Mr. Mark Seaman 2. APPROVAL OF MINUTES A. Approval of Minutes of the Rescheduled Regular Meeting of Wednesday, September 26, 2009. Upon a IllOtlOn by MI-. DOVI'neS, SeCOnded by MS. COMMISSION APPROVED THE MINUTES OF THE Kmg and UnanllnOUSly Carned, the CominlsslOn RESCHEDULED REGULAR MEETING OF approved the Minutes of the Rescheduled Regular WEDNESDAY, SEPTEMBER 26, 2009 Meeting of Wednesday, September 26, 2009. South Bend Redevelopment Commission Regular Meeting -September 4, 2009 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted September 4, 2009 for approval. 305 FUND SBCDA BOND The Troyer Group 10,391.50 WNIT 324 AIRPORT AEDA South Bend Parks & Recreation Phifer Environmental Services, LLC DHA 420 FUND TIF DISTRICT-SBCDA GENERAL AMPCO System Parking South Bend Parks & Recreation Ziolkowski Construction, Inc. 422 TIF DISTRICT WEST WASHINGTON South Bend Parks & Recreation Kaser Spraker Construction Kaser Spraker Construction Kaser Spraker Construction 8,475.00 Mowing 3,300.00 IVY Tech 2,220.00 2,082.79 780.00 Mowing 10,633.00 The Vine Repair Terra Cotta Repair 150.00 Mowing 32,485.25 Natatorium 5,709.50 Natatorium, Ph II Program Delivery 24,609.75 Natatorium to Cover Interior $ 100,836.79 Upon a motion by Mr. Downes, seconded by Mr. Varner and unanimously eai7-ied, the Commission approved the Claims submitted September 4, 2009, and ordered checks to be released. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. South Bend Central Development Area (1) First Amendment to Development Agreement for Easement between South Bend Redevelopment Commission and COMMISSION APPROVED THE CLAIMS SUBMITTED SEPTEMBER 4, 2009, AND ORDERED THE CHECKS TO BE RELEASED THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS 2 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 Michiana Public Broadcasting Corporation. Mr. Meteiver noted that the Redevelopment Commission and WHIT are parties to a development agreement dated May 5, 2008. The agreement is related to the premises located at 300 W. Jefferson Blvd., the former WSBT building. WNIT also executed an agreement for easement whereby WNIT conveyed to the Commission an easement of the facade of that building so the Commission could fund and construct improvements to the facade. The Board of Public Works has just held its preconstruction meeting with the successful bidder on the project and will be issuing a notice to proceed soon. We anticipate a construction period of 210 construction days which will take construction beyond expiration of the current agreement. This agreement is necessary to modify the terms and conditions of the agreement and easement to avoid a default situation. Staff recommends approval of the First Amendment to Development Agreement for Easement and the Amended Agreement for Easement with Michiana Public Broadcasting. Mr. Varner asked if the development agreement still includes the Jumbotron. Mr. Metiever responded that it does. Mr. Downes made a motion to approve the First Amendment to Development Agreement for Easement between the South Bend Redevelopment Commission and Michiana Public Broadcasting. Mr. Alford seconded the motion. The motion carried on COMMISSION APPROVED THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR EASEMENT BETWEEN SOUTH BEND REDEVELOPMENT COMMISSION AND MICHIANA PUBLIC BROADCASTING CORPORATION South Bend Redevelopment Commission Regular Meeting -September 4, 2009 a vote of four in favor; Mr. Varner voted nay. (2) Amended Agreement for Easement with Michiana Public Broadcasting Corporation. Mr. Downes made a motion to approve the Amended Agreement for Easement with Michiana Public Broadcasting Corporation. Mr. Alford seconded the motion. The motion carried on a vote of four in favor; Mr. Varner voted nay. B. Airport Economic Development Area (1) Proposal for agreement for new telephone system for Blackthorn Golf Course. Mr. Inks noted that the total cost for the new telephone phone system is just over $3,600. The cun-ent telephone system works intermittently. Consequently, the golf course is losing business when people try to call and cannot get through. We would like to move as quickly as possible to remedy the situation. Three quotes were sought. AT&T was the lowest quote. This will be paid from Blackthorn's capital budget. not TIF funds. Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission accepted the proposal fi•om AT&T for a new telephone system for Blackthorn Golf Course for the scope of services and fee proposed. (2) Staff report on TCU notice and offer to Redevelopment Commission regarding SASCO loan. Mr. Inks noted that in 1999, to facilitate the COMMISSION APPROVED THE AMENDED AGREEMENT FOR EASEMENT WITH MICHIANA PUBLIC BROADCASTING CORPORATION COMMISSION ACCEPTED THE PROPOSAL FROM AT&T FOR A NEW TELEPHONE SYSTEM FOR BLACKTHORN GOLF COURSE FOR THE SCOPE OF SERVICES AND FEE PROPOSED 4 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 purchase and move of Studebaker Auto Parts inventory, the Redevelopment Connnission took a note fi-om SASCO in the amount of $150,000. TCU is now offering to buy the debt instrument, security and risk guarantee and related documents for the amount of $10,000. That same $10,000 is being made to other subordinated lenders, including the Industrial Revolving Fund and Mr. Geoff Newman. The IRF made an initial loan of $200,000; Mr. Newman had a $100,000 loan. The cun-ent balance on the Redevelopment Commission's loan is $141.741. The first few payments were made on the loan; then payments became erratic and ceased after September 2001. Currently, only the senior lender (TCU) is receiving payments and has a balance of $977,352. TCU has been receiving interest-only payments and that at a reduced interest rate. TCU has notified the Redevelopment Commission of its intent to sell the collateral to the highest qualified bidder, in public, on September 15, 2009. The Commission has a right to an accounting of the unpaid indebtedness secured by the property for a charge of $150. Staff believes that the value of the inventory is less t11an the amount owed TCU. The inventory was originally purchased for $850,000. Relocation costs going back to that time period were in the $1.SM range. It was a self move. SASCO moved across the street from the jail site to the cun-ent location. We have received recent estimates to move the inventory in the $.7M to $ l M dollar range. We just believe there is no value in the inventory. Some would probably argue that the collection of Studebaker Auto Parts is in-eplaceable, but its real economic value is 5 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 determined by what it can be sold for. Historically, the sale of these parts has not generated sufficient profits to keep cur•ent on the loans that are due. Accordingly, Mr. Inks believes the value of the Commission's before the asset sale is $0. After the sale of the parts inventory, there will be no assets that the Commission could pursue on the loan. The unsecured personal guarantee also has little, if any value, and would require additional time and expense to pursue. Based on a review of personal financial information, it appears there is nothing to pursue. The staff recommendation is to accept the offer fi•om TCU in the amount of $10,000 and we would further recommend the Commission authorize payment of $150 for an accounting from TCU of the unpaid indebtedness secured by the property being sold. While we all have every confidence in TCU carrying out the sale in everyone's best interest, as a public entity we should probably have on record an accounting of that sale. Staff recommends accepting the offer of $10,000 and to have the accounting of sale at $150. Mr. Downes asked how soon the building would be vacant. Mr. Inks responded that staff is hoping it will be vacant the end of January. Staff is currently having demolition specifications written, with the intent of going out to bid near the end of the year for demolition. Upon a motion by Mr. Downes, seconded by Mr. Alford and unanimously carried, the Commission accepted the offer fi•om Teachers Credit Union in the amount of $10,000 and authorized payment of $150 for COMMISSION ACCEPTED THE OFFER FROM TEACHERS CREDIT UNION IN THE AMOUNT OF 1 0,000 AND AUTHORIZED PAYMENT OF $ t SO FOR AN ACCOUNTING OF THE SALE FROM TEACHERS CREDIT UNION South Bend Redevelopment Commission Regular Meeting -September 4, 2009 an accounting of the sale from Teachers Credit Union. (3) Update on Project Impact Performance Mr. SU111111erS noted that the CO11n111SS1011 UPDATE ON PROJECT IMPACT PERFORMANCE provided a grant to Project Impact to launch a job readiness training initiative to serve the needs of businesses in the Airport Economic Development Area (AEDA) and Urban Enterprise Zone (UEZ), and to recruit and train potential employees from the increasing population of ex-offenders returning to the conmlunity in need of employment as well as other hard core unemployed. The methodology of the initiative is to provide life skills and job readiness training, identify the employment needs of businesses located within the AEDA and UEZ, an•ange for the employees to receive technical job skills training, and provide job coaches to mentor and support employees after hiring. Project hnpact was clear about the participation criteria. The program was meant for hard to employ people. Applicants were given an orientation, stressing the level of commitment necessary and then attended a five-day boot camp to weed out those not serious about making changes to their lives and behavior. Even after those qualifiers, there were nearly twice as many participants as Mr. Summers and Mr. Blake had anticipated. Eighty-two participants have taken training; sixty-three have graduated fi•om the program; fifty-three participants had felonies; twenty-three live within the AEDA or UEZ; sixteen participants are working (some of those while still training); and six companies fi•onl the UE or AEDA are employing the participants or graduates. 7 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 Though participation and graduation have exceeded original goals, the percentage of participants residing in the AEDA or UEZ has not reached the goal of 50%. As of now, the rate is 40%. Mr. Downes asked how many of the 4I jobs are full time. Mr. Summers responded that 16 are full time. Ms. King asked if Project Impact is still trying to find jobs for those graduates who do not have jobs. Mr. Summers responded that they are. Ms. King asked if any of the graduates have participated in the Apprentice Academy or Ivy Tech additional training. Mr. Summers responded that they have been given the Facilities Maintenance training from Ivy Tech and some are still in the Machinist training, that is more advanced. A couple more have gone on to take classes at Ivy Tech. Several others are trying to get into classes at Ivy Tech. Mr. Summers noted that one of the key elements of the Project Impact program is the ongoing support they provide after graduation. Two counselors follow up with participants weekly, either by telephone or face to face, even if the participants are incarcerated. The jail has been so impressed with Project Impact's support and intervention they have requested a regular presentation be offered at the jail for other iml~ates. Part of the support to the client is to have a relationship with the entire family. The reinforcement from the family helps keep the participant on track. Also, several 8 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 psychologists also provide support, as needed. Participants also receive economic and entrepreneurship training, job interview rehearsals, post-hire counseling to move up to better jobs; and refen•als to services from a variety of community non-profit organizations as needed. Mr. Swnmers provided a large list of companies that Project Impact is contacting as potential employers for their clients. Ms. King asked what the requirement is in our contract for these funds in teens of the target area. How many participants are supposed to be from the UEZ and how many are to be employed in the UEZ? Ms. Leonard responded that the contract goal is to have 50% of job placements be residents of the UEZ. The law actually says that 50% of the job openings have to be made available to residents of the UEZ. The law allows employers to be from location, though the program is concentrating on AEDA employers. Ms. King asked about the nature of the jobs where participants have been placed: are they jobs that provide a living wage? Mr. Summers responded that the sixteen full time jobs do. Some are above minimum wage. Mr. Summers will provide the Commission with a breakdown of wages for the employed graduates. Ms. King noted that at the start of the program, there was great optimism that Project Impact would not need TIF funds for the second year. Does Project Impact still expect that? Mr. Summers responded that they are working still toward that goal. They have two grant writers who have been 9 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 applying for grants. That is one reason the program is concentrating on new job creation: to have other sources of revenue in order to become self-sustaining. Most grant funds are aimed at helping youth. There are not a whole lot of people who are excited about helping adults who have made a mistake. Ms. Jones asked if Mr. Summers talks with potential employers about supporting the program financially. Mr. Summers responded that he does. However, Project hnpact needs to show a real return on investment, that the workers they provide are not a problem, but a benefit. Then, there is a list of various ways employers can provide investment, from supplying trainers all the way up to significant financial contributions. Mr. Summers is still very confident Project Impact will be able to use return on investment as an incentive with employers. He noted that employers are always surprised that he is not looking for a handout, or for them to do something that puts their organization at risk. Mr. Downes asked if there aren't restrictions resulting from the TIF dollars used to fund Project Impact that require a certain portion of the employers to be from the AEDA. Mr. Inks responded that the program was designed to help residents of the UEZ. There is another portion of state law that allows the Commission to work with individual businesses, but we're not using that now. Mr. Downes asked Mr. Summers to include in his report next time the number of employed clients who are residents of UEZ. Mr. Summers said that he would. 10 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 Ms. King asked to see financial reports on the expenditure of TIF funds. Mr. Summers said he would provide that also. C. West Washington-Chapin Development Area There was no business in the West Washington- Chapin Development Area. D. South Side Development Area There was no business in the South Side Development Area. E. Northeast Neighborhood Development Area There was no business in the Northeast Neighborhood Development Area. F. Douglas Road Economic Development Area (1) Access Agreement with Douglas Road Retail Partners. Mr. Schalliol noted that these Access Agreements allow the city and its agents to access property owned by the Douglas Road Partnership and the Douglas Road Retail partners to construct and improve a drive that is on private property. The private drive, known as Market Place Drive, is the entrance drive for Memorial Home Care on the north and Brown Mackie College on the south at the signalized intersection of Douglas and S.R. 23. The Access Agreements are only for work on the north side of Market Place Drive. Upon a motion by Mr. Downes, seconded by Mr. Vainer and unanimously carried, the Commission approved the Access Agreement with Douglas Road Retail Partners. COMMISSION APPROVED THE ACCESS AGREEMENT WITH DOUGLAS ROAD RETAIL PARTNERS 11 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 (2) Access Agreement with Douglas Road Partners and Memorial Home Care. Upon a motion by Mr. Downes, seconded by COMMISSION APPROVED THE Access MI'. Varney and UnarilrilOUSly Carried, the AGREEMENT WITH DOUGLAS ROAD PARTNERS C0111n11SSlOll apprOVed the Access AgI'eelllent AND MEMORIAL HOME CARE with Douglas Road PaI-tners and Memorial Home Care. G. Ratification of Service Contracts Commission Role in Contract Staff Property Description Transaction Contractor Service Provided Amount Member 912 S Lafayette, Acquisition Jerome Michaels Appraisal $1,385 Airgas Great Lakes Relos Inc 912 S Lafayette, Acquisition Ralph Lauver Appraisal $1,350 Relos Airgas Great Lakes Inc 912 S Lafayette, Acquisition Pfifer Environ- Phase IEnviron- $1,400 Relos Airgas Great Lakes mental mental Inc Upon a motion by Mr. Downes, seconded by Ms King and unanimously carried, the Commission ratified the Service Contracts approved since August August 26, 2009. H. Ratification of Temporary Use Agreement COMMISSION RATIFIED THE SERVICE CONTRACTS APPROVED SINCE AUGUST AUGUST 26.2009 Use/Agency Lot Event Dates of Use Spark Design Studio 121 S. Michigan, Michigan Street Shops Renovation of retail space 90 days, beginning August 28, 2009 Upon a motion by Mr. Downes, seconded by Ms. King and unanimously carried, the Commission ratified the Temporary Use Agreement with Spark Design Studio. COMMISSION RATIFIED THE TEMPORARY USE AGREEMENT b1'ITH SPARK DESIGN STUDIO 12 South Bend Redevelopment Commission Regular Meeting -September 4, 2009 7. PROGRESS REPORTS There WaS n0 I'ep01't. PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next meeting of the Redevelopment Commission is NEXT COMMISSION MEETING scheduled for Friday, September 18, 2009 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redevelopment Commission, the meeting was adjourned at 10:53 a.m. Donald E. Inks, Director 1J