REDEVELOPMENT COMMISSION MEETING

April 26, 2010

 

The regular meeting of the City of Mishawaka Redevelopment Commission was called to order at 6:32 p.m., Monday, April 26, 2010, in Room 205, City Hall, 600 East Third Street, Mishawaka, Indiana.  Commissioners Eberhart, O’Dell, Troiola, Mammolenti, and Gebo were present.   Commissioner Stillson was absent.  Also in attendance:  Lory Timmer, Community Development Director; Kari Myers, Administrative Planner; and John Gourley, Legal Counsel.

 

Commissioner O’Dell moved to approve the minutes of the March 22, 2010 meeting, noting the spelling corrections in “TIF Projects Update”.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-03:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 548 and 550-552 West Sixth Street

Lorry Timmer presented Resolution 2010-03 and said this is a foreclosed property located on the northeast corner of West Sixth Street and Wells Street.  It is a non-conforming property in that there are two buildings on one lot, and between the two buildings there are ten (10) rental units.  The buildings have been vacant since October 2006.  She said the average of two independent appraisals placed the value at $49,000.  We are acquiring this property for use in our NSP Strategy Plan, and per NSP regulations, we have to acquire foreclosed property at 1% below appraised value.  An offer of $48,150 was made and accepted.  The structures will be demolished, the lot will be split, and two 2-story Habitat for Humanity homes will be built on the site.  Closing is scheduled to take place on April 28, pending the Redevelopment Commission’s approval.  Commissioner Troiola moved for approval of Resolution 2010-03.  Commissioner Gebo seconded; motion carried.

 

RESOLUTION 2010-04:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 327 South Milburn Court

Mrs. Timmer said this property has been vacant since April 2009.  The average of two independent appraisals placed the value at $16,500.  The property is being acquired for use in our NSP Strategy Plan, but since the property is not a foreclosure, we offered the full appraised value of $16,500, which was accepted.  The structure will be demolished and a one-story Habitat for Humanity home will be built on the site.  Commissioner Mammolenti moved to approve Resolution 2010-04.  Commissioner Troiola seconded; motion carried.

 

RESOLUTION 2010-05:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 407 West Sixth Street

Mrs. Timmer indicated this foreclosed property has been vacant since September 2008.  The average of two independent appraisals placed the value at $42,250.  We are acquiring this property for use in our NSP Strategy Plan, and per NSP regulations, we have to acquire foreclosed property at 1% below appraised value.  An offer of $41,827.50 was made and accepted.  The structure will be demolished and a First-Time Homebuyer house will be built on the site.  Commissioner O’Dell moved to approve Resolution 2010-05.  Commissioner Gebo seconded.

 

RESOLUTION 2010-06:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 501 West Sixth Street

Mrs. Timmer presented Resolution 2010-06 to the Commissioners.  She said this combined commercial & residential property has been vacant since June 2006.  The average of two independent appraisals placed the value at $45,500.  She said the City is acquiring this property for use in our NSP Strategy Plan, but since the property is not a foreclosure, we offered the full appraised value less $1,800.  This partially covers the City’s cost of disposing of a barrel of toxic waste that the seller left at a property the City previously acquired.  Our offer of $43,700 was accepted.  The structure will be demolished and a First-Time Homebuyer house will be built on the site.  Commissioner Troiola moved to approve Resolution 2010-06.  Commissioner Mammolenti seconded; motion carried.

 

RESOLUTION 2010-07:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 519 West Sixth Street

Per Mrs. Timmer, this property has been vacant since April 2009.  The average of two independent appraisals placed the value at $18,250.  We are acquiring this property for use in our NSP Strategy Plan, but since the property is not a foreclosure, we offered the full appraised value of $18,250, which was accepted.  The structure will be demolished and a First-Time Homebuyer house will be built on the site.  Commissioner O’Dell moved to approve Resolution 2010-07.  Commissioner Mammolenti seconded; motion carried.

 

RESOLUTION 2010-08:  APPROVING THE ACQUISITION OF THE PROPERTY LOCATED AT 513 South Taylor Street

Mrs. Timmer said this property has been vacant since November 2008.  The average of two independent appraisals placed the value at $13,500.  We are acquiring this property for use in our NSP Strategy Plan, but since the property is not a foreclosure, we offered the full appraised value of $13,500, which was accepted.  The structure will be demolished and a two-story Habitat for Humanity house will be built on the site.  Commissioner Gebo moved to approve Resolution 2010-08.  Commissioner Troiola seconded; motion carried.

 

RESOLUTION 2010-09:  ESTABLISHING A LINE OF CREDIT FOR THE NSP PROGRAM

Mrs. Timmer presented Resolution 2010-09 to the Commissioners.  She said this line of credit will be in the amount of $500,000.00 to cover construction costs for three new homes.  The interest rate is National Prime Floating, set according to the Wall Street Journal Prime Rate, which is currently 3.25%.  There is no term or expiration date.  She said the NSP is structured as a reimbursement program.  That means we have to pay project-related costs using our own funds, and then IHCDA will reimburse us within 10 days.  Since the City doesn’t have a funding source suitable for “fronting” the money, she has set up a line of credit with Mutual Bank similar to what we utilize for the First Time Homebuyer Program.  We will pay all NSP associated costs out of the line of credit, and then pay off the balance when we’re reimbursed from IHCDA.   Commissioner Gebo moved to approve Resolution 2010-10.  Commissioner Mammolenti seconded; motion carried.

 

RESOLUTION 2010-10:  APPROVING THE RETAINING OF A DEVELOPMENT CONSULTANT

Mrs. Timmer said as mentioned at last month’s meeting, we are pursing Low Income Housing Tax Credits as the major funding source for the conversion of the former Mishawaka Furniture building into senior citizen apartments.  The application process is complicated, so she is asking permission to retain the services of Neighborhood Development Associates of South Bend for assistance.  They will complete the entire process and submit the application in November.  The fixed fee they are requesting for this service is $60,000, plus out-of-the-ordinary expenses.  Expenses such as mileage, postage, copying, long distance phone calls, are included in the base fee.  They will also assist us in assembling a development team for the project.  A motion was made and seconded to approve Resolution 2010-10; motion carried.

 

Mrs. Timmer provided Commissioners with the following updates.

 

TIF Projects Update 

North Main Street Improvements:  Mishawaka Avenue to Battell Street

This project is scheduled to be bid in May 2010.  No property acquisitions are necessary for this phase of the Main Street improvements.

 

North Main Street Improvements:  101 E. McKinley (Midas Building)

Demolition quotes will be opened at the Board of Public Works and Safety on May 4.

 

North Main Street - Donaldson Street to McKinley Avenue

This project was awarded to Walsh & Kelly with work to begin this week.  The project includes demolition of 2219 North Main and the widening of Main Street to five lanes from Donaldson to Guam.  It also includes concrete pavement, new curb and gutter, sidewalks and concrete drives. 

 

Church / Union Street, Lincolnway East to Dragoon Trail

Engineering services for this project will be performed by First Group Engineering from Indianapolis.  Work includes modernization of existing traffic signals on Church / Union from Lincolnway East to Dragoon Trail.

 

Mill Street Improvements and Parking Lot

Current construction consists of parking lot grading, storm sewer and electrical conduit installation.  Concrete paving of the parking lot will follow in early May, weather permitting.  Paving will take approximately two weeks.  The Mishawaka Utilities Electric Division will remove utility poles and overhead lines after paving is complete.

 

Holy Cross Parkway Lift Station - Ph. IB

The project is nearing substantial completion.  A permanent perimeter fence post and a telemetry pole have been installed.  Final site work and miscellaneous cleanup is in progress.

 

Holy Cross Parkway Lift Station Forcemain - Ph. IIE

This project includes 3,900 feet of 24” sanitary forcemain to be installed via horizontal direction drill methods.  The project is still under design.

 

Holy Cross Parkway Lift Station Forcemain - Phase IIF

All piping is installed on this project and restoration activities are under way.  It is anticipated that HRP Construction will complete the project by Memorial Day weekend.

 

River Crossing II

The contractor on the project, Carson & Roberts Site Construction Engineering, Inc. of Lafayette, New Jersey, has started construction.  They have installed the gravity sewer pipe and started on the Central Park improvements.  Work in the park is scheduled to be completed by May 31, and the remainder of the project is expected to be complete by the end of August.

 

Douglas Road Medical Park Road - Ph. I

This project was awarded to Selge Construction for the amount of $682,429.12.  A preconstruction meeting was held on April 21.  The project consists of 4,000 linear feet of new roadway storm sewer, retention basin, sidewalk, watermain and sanitary sewer.  Completion is anticipated in early August.

 

NEIGHBORHOOD PROGRAMS

Neighborhood Stabilization Program (NSP) Grant

River Center Apartments:  Mrs. Timmer said she is asking to receive quotes for asbestos abatement at the April 27 meeting of the Board of Public Works and Safety.  Quotes will be received May 11 and awarded May 18.  After asbestos has been removed, the utilities will be shut off in the building until winter.

 

She said the architect for the project, Greg Kil, has asked a Marvin Windows dealer to build a prototype window that will be installed.  Mr. Kil is also having a window rehabbed by a nationally recognized window restoration company in Chicago.  The two windows will be installed side by side so a comparison can be made of a new window vs. a restored window.

 

Mrs. Timmer indicated of the twenty properties we proposed acquiring for the neighborhood revitalization portion of the NSP grant, one has been acquired so far.  Purchase agreements for four other properties have been signed.  We are working very hard with our acquisition consultant, Neighborhood Development Associates, to secure signed purchase agreements for six (6) more properties.  The grant guidelines dictate that we spend 25% ($500,000) of our funds on properties that have been foreclosed upon, but we are having difficulties working with the banks that have taken possession of the properties.  She said the banks don’t want to do short sales, or they only work through realtors and the properties aren’t listed yet, or they don’t even know they own the property.  Many of the most blighted properties have been deemed “toxic assets” by the institutions that hold the lien; they don’t want to foreclose because the property has little value, yet the owner has moved out and can’t be located.  This is posing a problem for the First-Time Homebuyer Program, because the cleared lots that we would use for construction are coming from demolished NSP properties.

 

The one property for which we have possession, 530 W. Sixth Street, is scheduled to be demolished in mid-May.  This was a foreclosed property that we purchased from HUD for $1.  Ownership of the property will be transferred to Habitat for Humanity of St. Joseph County, and they will begin digging the foundation on June 11.  Fortunately, there is no limit on the amount of subsidy we can give Habitat using NSP funds.  This is a large lot for the neighborhood, 75’ x 125’, so I’ve asked Habitat to build their largest 2-story house on the site.  Professional contractors must be hired to build the second floor and do the roof, so we will be providing a $55,000 subsidy for this build.  A larger Habitat subsidy helps meet the NSP requirement that 25% of the funds be spent on foreclosed homes.

NEXT MEETING

The next regular meeting of the Redevelopment Commission will be May 25, 2010 at 6:30 p.m. in room 205.

 

The meeting was adjourned at 7:32 p.m.

Respectfully Submitted:                                             Approved:

 

(Signature on file)                                                        (Signature on file)                               

Kari Myers, Administrative Planner                           M. Gilbert Eberhart, President

 

(Signature on file)       

Lory L. Timmer, Community Development Director

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