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HomeMy WebLinkAbout09-04-09 Redevelopment Commission Minutes SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING September 4, 2009 10:00 a.m. 227 West Jefferson Boulevard Presiding: Marcia I. Jones, President South Bend, Indiana 1. ROLL CALL Members Present: Ms. Marcia Jones, President Dr. David Varner, Vice President Ms. Nancy King, Secretary Mr. Greg Downes Mr. Donald Alford Members Absent: 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. David Relos, Economic Development Specialist Ms. Debrah Jennings, Property Manager Others Present: Mr. Tom Price, Mayor’s Office Mr. Hardie Blake, Project Impact 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. CM Upon a motion by Mr. Downes, seconded by Ms. OMMISSION APPROVED THE INUTES OF THE RRM ESCHEDULED EGULAR EETING OF King and unanimously carried, the Commission W,S26,2009 EDNESDAY EPTEMBER approved the Minutes of the Rescheduled Regular 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 8,475.00 Mowing Phifer Environmental Services, LLC 3,300.00 IVY Tech DHA 2,220.00 420 FUND TIF DISTRICT-SBCDA GENERAL AMPCO System Parking 2,082.79 South Bend Parks & Recreation 780.00 Mowing Ziolkowski Construction, Inc. 10,633.00 The Vine Repair Terra Cotta Repair 422 TIF DISTRICT WEST WASHINGTON South Bend Parks & Recreation 150.00 Mowing Kaser Spraker Construction 32,485.25 Natatorium Kaser Spraker Construction 5,709.50 Natatorium, Ph II Program Delivery Kaser Spraker Construction 24,609.75 Natatorium to Cover Interior $ 100,836.79 CC Upon a motion by Mr. Downes, seconded by Mr. Varner OMMISSION APPROVED THE LAIMS S4,2009, SUBMITTED EPTEMBER AND and unanimously carried, the Commission approved the ORDERED THE CHECKS TO BE RELEASED Claims submitted September 4, 2009, and ordered checks to be released. 4. COMMUNICATIONS TC There were no Communications. HERE WERE NO OMMUNICATIONS 5. OLD BUSINESS TOB There was no Old Business. HERE WAS NO LD USINESS 6. NEW BUSINESS A. South Bend Central Development Area (1) First Amendment to Development Agreement for Easement between South Bend Redevelopment Commission and 2 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued… Michiana Public Broadcasting Corporation. Mr. Meteiver noted that the Redevelopment Commission and WNIT 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 façade of that building so the Commission could fund and construct improvements to the façade. 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. 3 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) A. South Bend Central Development Area (1) continued… CF Mr. Downes made a motion to approve the OMMISSION APPROVED THE IRST ADA MENDMENT TO EVELOPMENT GREEMENT First Amendment to Development ESB FOR ASEMENT BETWEEN OUTH END Agreement for Easement between the South RC EDEVELOPMENT OMMISSION AND Bend Redevelopment Commission and MPB ICHIANA UBLIC ROADCASTING Michiana Public Broadcasting. Mr. Alford C ORPORATION seconded the motion. The motion carried on a vote of four in favor; Mr. Varner voted nay. (2) Amended Agreement for Easement with Michiana Public Broadcasting Corporation. CA Mr. Downes made a motion to approve the OMMISSION APPROVED THE MENDED AEM GREEMENT FOR ASEMENT WITH ICHIANA Amended Agreement for Easement with PBC UBLIC ROADCASTING ORPORATION 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 current 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. 4 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (1) continued… C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE PROPOSAL FROM AT&T FOR A NEW TELEPHONE SYSTEM FOR Ms. King and unanimously carried, the BGC LACKTHORN OLF OURSE FOR THE SCOPE Commission accepted the proposal from OF SERVICES AND FEE PROPOSED 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 purchase and move of Studebaker Auto Parts inventory, the Redevelopment Commission took a note from 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 current 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 5 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued… 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 than the amount owed TCU. The inventory was originally purchased for $850,000. Relocation costs going back to that time period were in the $1.5M range. It was a self move. SASCO moved across the street from the jail site to the current location. We have received recent estimates to move the inventory in the $.7M to $1M dollar range. We just believe there is no value in the inventory. Some would probably argue that the collection of Studebaker Auto Parts is irreplaceable, but its real economic value is determined by what it can be sold for. Historically, the sale of these parts has not generated sufficient profits to keep current 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 from 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 6 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (2) continued… 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. C Upon a motion by Mr. Downes, seconded by OMMISSION ACCEPTED THE OFFER FROM TCU EACHERS REDIT NION IN THE AMOUNT OF Mr. Alford and unanimously carried, the $10,000$150 AND AUTHORIZED PAYMENT OF Commission accepted the offer from FOR AN ACCOUNTING OF THE SALE FROM Teachers Credit Union in the amount of TCU EACHERS REDIT NION $10,000 and authorized payment of $150 for an accounting of the sale from Teachers Credit Union. (3) Update on Project Impact Performance UPI Mr. Summers noted that the Commission PDATE ON ROJECT MPACT 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 7 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… population of ex-offenders returning to the community 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, arrange for the employees to receive technical job skills training, and provide job coaches to mentor and support employees after hiring. Project Impact 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 from 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 from the UE or AEDA are employing the participants or graduates. 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%. 8 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… Mr. Downes asked how many of the 41 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 inmates. 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 9 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… 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 referrals to services from a variety of community non-profit organizations as needed. Mr. Summers 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 terms 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 10 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… 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 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 Impact 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 11 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (3) continued… 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. 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. 12 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 6. NEW BUSINESS (CONT.) F. Douglas Road Economic Development Area (1) continued… 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. CA Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE CCESS ADRR GREEMENT WITH OUGLAS OAD ETAIL Mr. Varner and unanimously carried, the P ARTNERS Commission approved the Access Agreement with Douglas Road Retail Partners. (2) Access Agreement with Douglas Road Partners and Memorial Home Care. CA Upon a motion by Mr. Downes, seconded by OMMISSION APPROVED THE CCESS ADRP GREEMENT WITH OUGLAS OAD ARTNERS Mr. Varner and unanimously carried, the MHC AND EMORIAL OME ARE Commission approved the Access Agreement with Douglas Road Partners and Memorial Home Care. 13 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 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 I Environ-$1,400 Relos Airgas Great Lakes mental mental Inc CS Upon a motion by Mr. Downes, seconded by Ms. OMMISSION RATIFIED THE ERVICE CA ONTRACTS APPROVED SINCE UGUST King and unanimously carried, the Commission A26,2009 UGUST ratified the Service Contracts approved since August August 26, 2009. H. Ratification of Temporary Use Agreement Use/Agency Lot Event Dates of Use Spark Design Studio 121 S. Michigan, Renovation of retail space 90 days, beginning Michigan Street Shops August 28, 2009 CT Upon a motion by Mr. Downes, seconded by Ms. OMMISSION RATIFIED THE EMPORARY UASD SE GREEMENT WITH PARK ESIGN King and unanimously carried, the Commission S TUDIO ratified the Temporary Use Agreement with Spark Design Studio. 7. PROGRESS REPORTS PR There was no report. ROGRESS EPORTS 8. NEXT COMMISSION MEETING NCM The next meeting of the Redevelopment Commission is EXT OMMISSION EETING scheduled for Friday, September 18, 2009 at 10:00 a.m. 14 South Bend Redevelopment Commission Regular Meeting –September 4, 2009 9. ADJOURNMENT A There being no further business to come before the DJOURNMENT Redevelopment Commission, the meeting was adjourned at 10:53 a.m. 15