REDEVELOPMENT COMMISSION MEETING MINUTES

July 27, 2015

 

The regular meeting of the City of Mishawaka Redevelopment Commission was called to order at 6:30 P.M. Monday, July 27, 2015 in Room 205, City Hall, 600 Third Street, Mishawaka, Indiana. Commissioners Pingel, O'Dell, Eberhart, Deal, Stillson and Ermeti were present. Also present were Ken Prince, Attorney Beutter, Laura Raygoza, Marilyn Nelums-Jones and Joe Dits.

Before proceeding with the meeting, Commissioner Pingel asked for a moment of silence in remembrance of Attorney John Gourley who passed away on July 26, 2015.

APPROVAL OF JUNE 22, 2015 MINUTES

Commissioner O'Dell motioned to approve the minutes from the June 22, 2015 Redevelopment Commission meeting, Commissioner Eberhart seconded; motion carried.

RESOLUTIONS 2015-07 AND 2015-08- BARAK IRON ROCK TAX ABATEMENT REQUESTS WITHIN THE CITY'S CONSOLIDATED TAX INCREMENT FINANCE DISTRICT

Ken Prince stated the abatement remains the same. We were asked to submit two separate resolutions because there would be two different actions. It gives us the opportunity to look at the properties differently. The Redevelopment Commission's role is relative to the approval of the debt that's coming off of the district. Redevelopment located in TIF district; we're responsible for those funds. The only debt we currently have is the one million dollar bond for the BatteII Center. The Redevelopment Commission is asked to determine if this will have adverse impact on projects and our ability to pay off debt. When the analysis was done we did not count on any revenue. This is similar to the apartment project on Mishawaka Avenue.

Ken Prince asked the Developer and Development team to state where they are. Marcellus Lebbin, May, Oberfell and Lorber who represents the Barak Group stated that they have completed a market study, price range and camps and will definitely go forward with the project. There will be 30-40 units instead of 25-40. There will be three bedroom units with 2- two bedroom units per floor. There will be a 60-75 new resident range for the first tower. Along with the first tower they will build a cafe. They are in discussion with potential operators for that space. Long term, it is the goal to generate more revenue for TIF. Looking for five years, the first year is so that Developer meets its tax obligations and after that to sell units. Commissioner Deal asked if the abatement is a deal breaker. Marcellus Lebbin said they would go back and reevaluate if need be. Commissioner Eberhart motioned to approve Resolutions 2015-07 and 2015-08; Commissioner O'Dell seconded; motion approved.

BUY SELL AGREEMENT- VARIOUS PROPERTIES IN AND AROUND 403 EAST MISHAWAKA AVENUE, SOUTHEAST CORNER OF DIVISION STREET AND MISHAWAKA AVENUE (DIVISION STREET TO O'CONNOR STREET)

Ken Prince stated that we have been working with Star Board regarding expansion plans. They have very limited property and are growing. They have acquired the house behind their property, and a small piece of property next to O'Connor Street. We obtained an appraisal for the property at 330,000.00 and agreed to 320,000.00. A "Gentleman's" agreement was made as they were finalizing plans. Parking is needed. Division is lined up perfectly with no offset crossing Mishawaka Avenue. Ken Prince asked that the Commission approve the Buy Sell Agreement to acquire the marina. It will pay for the realignment. O'Connor Street is an alley essentially. This will in long term give us opportunity to connect it and it will become a street. This will allow the acquisition of O'Connor and future development. They are going to re-locate to another site. There were no tanks that needed to be removed. Although there is potential contamination, we don't believe it comes from the current owner. If the Buy Sell Agreement is approved they would vacate the property around the first of the year and we would look at demolition around next spring. Commissioner Deal moved to approve the Buy Sell Agreement; Commissioner Ermeti seconded; motion carried.

SETTLEMENT OF MORTGAGE 1417 EAST THIRD STREET

The Owner has applied for Indiana's hardest hit fund. There is a settlement offer to the City of Mishawaka for $3,800.00. The current balance owed to the City of Mishawaka is $7,672.05. In this case accepting this settlement offer would recapture at least some of the money owed versus none at all. We are asking the Commission for approval to authorize the legal department for the City to authorize the settlement documents. Commissioner Eberhart motioned that approval be given; Commissioner O'Dell seconded; motion carried.

ANYTHING ELSE BROUGHT BEFORE THE COMMISSION

Ken Prince stated that the City is looking to refinance sewer bonds. Representative Umbaugh was present. When we approved the TIF funds we acknowledged the pledge and now we are asking that the reference be removed from the bond. It just clarifies that we can continue with the 3.5 million dollar pledge annually. Commissioner Eberhart motioned to approve; Commissioner O'Dell seconded; motion carried.

Commissioner Eberhart motioned to adjourn the meeting; Commissioner Deal seconded; meeting adjourned at 6:24P.M.

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Jim Pingel, President

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Ken Prince, City Planner

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Marilyn Nelums-Jones, Clerk

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