City of Bloomington, Indiana Redevelopment Commission, 18 May 2020

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From YouTube: Bloomington Redevelopment Commission, May 18, 2020

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meeting packet: https://bloomington.in.gov/onboard/meetingFiles/download?meetingFile_id=5803

A

That evening, I'd like to call the meeting to order.

A

It's roughly five o'clock or a little bit out for five. Let's start with roll.

A

Call this is diane griffin, david wolter, erik.

B

And wife nicola martin, okay, others present snap present. Oh I'm sorry.

C

Doors soon.

D

Okay, we're seeing the family hand apartment okay, let's see any others.

A

Present, you have any others present on here. They didn't call their names.

A

Nicholas jeff ryan yeah, so we have don't ask ins, we see when we have mary.

C

Morgan's you launch margot, and then we have to fall down doors.

C

What no? No it's? Okay, you know: nine six, one, eight ending efendi.

D

Okay, I'm getting I'm getting some background noise. Can I don't hear it now.

A

It's gone. Thank you. I don't know what happened all right. I'm.

A

Gonna go on what's that everyone that was the.

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President, we get everybody, I think we did all right. Let's, let's go, we've done.

A

The roll call let's go reading of the minutes is there a motion to approve the.

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Minutes for may the fourth 2020, how move we approve minutes from me.

E

Let's see 25 million may 4th before I tell sorry, and that was data. It's eric's.

B

Analyzed seconds: okay, all those in favor- and I guess we'll need a roll call. I'm.

A

Don griffin, yes, dave walter, yes, yeah.

A

Liquor and okay, so both it cindy karna and nicolas, did you say yes, yeah, okay,.

A

Okay not oppose the motion carries. Let's have a examination of claims is.

A

There a motion to approve the claims registers for may the 15th 2020 cindy.

D

Can ernie moves approval of the claims register? Okay, all in favor or against.

E

Certain okay, all in favor don griffith, says yes, david walters, says.

E

Yes, then, he can arnie, says yeah the closed campus says yes, say life, yes, okay,.

A

Not opposed the motion carries.

A

Let's go with the examination of payroll registers. Is there a motion to approve.

A

The payroll registers for april the 9th 2020 april, the 24th 2020 and may the 8th.

A

2020, this is eric's and I say: move for approval david wolter I'll. Second, that.

E

A

I'm don griffin, I say: yes, they will change.

E

I repeat: david wolter says yes, nicholas kappas, no sandwich. Yes, okay,.

A

None opposed the motion carries, let's have reports of officers and.

A

Committees is there a director's report today, mu doris mike? Do you get me now? I.

C

Do now- yes, sorry about that, so I mentioned had mentioned to you in.

C

The past we the hand department through the community, about my block, grant.

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Program received an additional allocation under he cares act, a.

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Community development block grant or cdbg funding in the amount of 500.

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Twenty-Five thousand six hundred fifty six dollars and that funding was to be.

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Used for activities undertaken for the prevention or responding to the komak 19.

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Pandemic, we have, we now have application process that is open for any agencies.

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Who would like to apply for funding applications opened up on? May the 11th.

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We will have to technical assistance meetings one tomorrow, tuesday may 19th.

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And two o'clock and another one thursday may 21st at 5:30. Those both are be done.

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By zoom and information on how to log in to that will be felt on on the hands.

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Website at bloomington iron gov for slash hand, and so we look to complete.

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That process and bring the recommendations we do have a committee.

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In place we'll be reviewing applications and we hope to bring surveying those.

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Proposed projects to the redevelopment commission sometime next month for.

C

Funding recommendations- that's all I have for now.

A

Cool is there a legal report? I don't know report it this time, but I'm.

F

Happy to answer any questions. Okay, anybody have any questions for legal.

A

Okay, is there a treasurer's report, yeah just one? Let you know that work is.

G

Progressing well on two garages, and we will be opening bids this week for phase.

G

One of the 4th street garage and then once we get those if those are all.

G

Acceptable gmp for wilhelm just a reminder they put it out for bid had.

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They actually contract with the subcontractors and then we contract them.

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Via the gmp, so we hope that shortly after the next phase will is in process.

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And will put bids out for that and that will be the remainder actual.

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Construction part, and then that would finalize between the two garages. All of.

G

Our gmp s and allow us to continue on that's it.

A

Any questions for jeff, okay, let's go with sorry guys. I need readers on here a.

A

Ctp update report: is there a ctp update report? None. Can you hear me? Yes, I don't.

C

Think alex is on the call. Do you have anything jeff, nothing beyond the garages.

G

That's really where the focus is right now is getting those moving and continue.

G

To get in okay, alright, thanks for your reports, folks appreciate it. That's going.

A

To new business, the next item of business is resolution. 20 27 approval.

A

Of the purchase agreement for 1730 south walnut street.

C

So be honest about this, so I will start off and then I will invent and by jeff.

C

Ryan who, as with the the developer company that was chosen so, as you know,.

C

The redevelopment commission owns the property at 17:30, south walnut street.

C

The site of the former night moves site back in. I want to say about september, of.

C

Last year we put out an rfi for proposals from the development of that.

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Site those are area files were do the end of middle december. We had ten.

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Developers who responded to our rfi we took and had discussions with those ten.

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Developers we had an internal committee that consisted of myself the controller.

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City, legal, with larry allen, planning and transportation director an esd director.

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And we met with the ten development companies and then reduced that down to.

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Florida we invited here for a second round of consideration of applications.

C

And decided to go with real america out of indianapolis indiana and we have jeff.

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Ryan, who is with real america, but the project? I let him talk a little bit more.

C

About the project, but one of the reasons why we chose real america is, with their.

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Low-Income housing tax credit experience, we were looking for developer who's had.

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Experience in low-income housing, tax credit as well as building affordable.

C

Housing which we look to build on that site will americas of women-owned.

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Business which we appreciate their development will be partnering with.

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Stone bell, where 20% of the units will be going to stone, built residents and.

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They will also have program manager on site to assist a stone built residents.

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They will be working with us on the design of those working on preliminary.

C

Design, but also get any more input on the design when their willingness to.

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Work with the local architect is, along with their own architect, to develop the.

C

Site so with that and over to jeff, and is there anything.

C

Else you would like to say you covered that pretty well, we're excited to be.

H

Part of bloomington with this and hope we're successful on it. We're we're.

H

Kicking it off already we're coming up with some preliminary building designs.

H

On it, seeing how we can maximize the site and make a beautiful building here,.

H

For the entrance to the switchyard park and to the southern part of bloomington.

H

Yeah I'd be happy to answer any questions. I don't want to take up your.

H

Time, though, just rambling on, does anyone have any questions in regards to this.

A

But lori, do you have anything you would want to add? I think the only thing I.

F

Would add, I would add, doris is just so. The rfi, as she mentioned, was issued in.

F

December, to kind of give us a sample of what the realm of possibilities were for.

F

The property there was a formal notice of offering, in accordance with the rbc.

F

Statutes and so this purchase agreement is being conducted more than 30 days.

F

After the opening of those official bids on the property that allows us to.

F

Negotiate for a myriad of other things other than the appraisal price, that's.

F

Why, as a whole project, this was deemed to be the most comprehensive project for.

F

The affordability requirements, but also the redevelopment commission's plan near.

F

The park and that all of this is in compliance with the statutory.

F

Requirements for the rtc, I have a question if I may, for city staff larry.

B

Jeff just reflects my ignorance, but on the other hand, maybe a typical public.

B

Perspective in wondering, if you could tell us more about the the conveyance.

B

Itself we we had the property appraised for its fair value, but if I understand.

B

Right were being asked to vote on, conveying the.

B

Property for a $1, so is this: was this always the plan for the city to do? It is.

B

This, how will we realize the value bye-bye jeff and his colleagues then.

B

Developing project that we consider to be in the public interest yeah I mean.

G

The we realize going into these and any land deals that we have that there's a.

G

Good possibility that we will not necessarily themselves so we looked at.

G

In totality of what what were we trying to accomplish, and given that and I'm.

G

Sorry, I'm sitting in the dark. I need to rely on, given that that this was the.

G

Best overall proposal, as we requested so well, it may not have been the just.

G

Fiscal proposal overall, it met all of the other attributes in the rfi that we.

G

Were looking for walter- and I just comment on this- that I read through the.

E

Proposal and also I noted that we wrote selling this for $1, but in exchange we.

E

Get the 99 years of affordability and that the partnering with stone belt is.

E

Very interesting, I'm glad to see that I'm familiar with some of the projects.

E

They've done up at south bend, they renovated an existing building, which is.

E

Really sparked a lot of development in south bend, downtown area.

E

They've got some new construction on their resume, which are interesting.

E

Buildings, they're not just something thrown up with vinyl siding. I think that.

E

You've chosen a really good partner here.

D

Hey larry at cindy or jeff or whomever can answer this, but so the purchase.

D

Price is a dollar, and the group has a year to secure financing and I think.

D

It's said in there that the closing shall be within a hundred and fifty days.

D

Of accrue or something along this line, but what happens if the financing fall.

D

Through and the property's been conveyed, can you speak to that so the way this is.

F

Set up is that because the financing has to be secured first, it won't have been.

F

Conveyed we won't have closed on the property, basically until the fuck.

F

Everything is secured, we set it up. There were kind of two avenues that we can go.

F

Through, as you all are aware, from some of our other agreements, the rdc is able.

F

To and its purchase agreements have either a repurchase clause either a fir.

F

Right of first refusal or a reversionary clause, units purchase agreements, or we.

F

Could set it up like this, which kind of gives us some security? One of the.

F

Reasons, though, I would know we feel relatively certain about this, and.

F

Confident because real america has extensive experience as we've already.

F

Talked about- and that was one of the primary factors they have extensive.

F

Experience in financing exactly these types of affordable housing deals and.

F

Also, navigating the significant hurdles that are placed in those state financing.

F

Credits that you have to get for these types of four miles of deals, and so that.

F

That's that's one of the primary factors that ranked this very highly among the.

F

Various proposals and offers that were submitted, but the way this deal is.

F

Structured that we could, we could have several options if we got to the end of.

F

The road if financing, fell through for some reason, maybe the state changed its.

F

Program or change the metrics or is it it was a particularly competitive year.

F

And somehow we didn't, we didn't meet that we would have the option of like.

F

Any contract we could really give the contract. We could give it a longer.

F

Timeline to try to make this deal work to maybe tweak some of the requirements.

F

To get the tax credits or we can put it back out and offer to sell the property.

F

Once again, because at that point the parties could disintegrate the purchase.

F

Agreement without having closed, then we would be free to enter into another.

F

Person, but we we do feel very confident that real america they're definitely.

F

Professionals with this they have, they have an extensive track record and we.

F

Feel very good about our likelihood of success with them, so it sounds like.

D

There's definite definite options if financing would fall through for some.

D

Reason that the property would not have been conveyed prior to financing being.

D

Secured yes, and if I may, the reason that we had it set up to be because the.

H

Original development agreement that was proposed by the city was 30 days after.

H

Tax credit allocation, I believe- and we switched it to 150, because once we get.

H

The allocation, then we need to sell the credits and do all of the the final.

H

Engineering design get the loan closed. So what our goal would be is is we would.

H

Close on the land the same day that we closed on our agreements for the loan.

H

And the equity from the tax credit, so it's all done at one time. There's.

H

Nothing that is before another one, so it's all it's all at once did I also ask.

D

About there is a timeline that was conveyed in the packet of information.

D

That was attached for our review is that timeline still accurate? It is not, and.

H

That is because of coronavirus tax credit applications are typically due.

H

The end of july, but the state has changed it to where they're going to be.

H

Due 120 days after the last county goes to stage 2, I believe that is today with.

H

Lake county going to stage two so we're expecting applications to be dilute.

H

September 15th, instead of july 27th other than that the.

H

You know basically just shifted everything back six weeks there was.

H

Nothing that we could control on that well, packet of information, which you got.

C

Which was their proposal that was put together before the whole kurama's virus.

C

Here and so it was based upon and when we received the information back in.

C

December, thank you. How many bedrooms are you? Are you thinking right now how many.

A

Bathrooms and what do you, I guess, let's start with the bedrooms and units our.

H

Current is, we are looking at 50 for affordable units with a mix of one two.

H

And three-bedroom apartments- and we are also now we're refining it to add in.

H

Some market rate units to maximize the site for the parking that we can get on.

H

That we're we're still working through that to figure out exactly what it is is.

H

Just there's a cap on tax credits, so the most we can afford with the tax credits.

H

For the affordable is the the 54 so we're hoping to get somewhere at least.

H

Up into the low 60s on the total units: okay, okay, thanks any other questions,.

A

From any other redevelopment, commissioners or anyone else, if I may.

B

This is there a couple of questions. One is for city staff. What, if any.

B

Consequences are there if the project is not completed and and started leasing by.

B

The by the top, the terms of the initial proposal or, however they've been amended.

B

Fair because of the current emergency and.

B

Question 2 is: is there a there is a public right of way into the park here.

B

Is there not, and is that going to be available as a public entry even before.

B

And during the construction itself, so I guess I will start where we are jeff. If.

C

You want so to answer your second question. First, the so there is a public.

C

Entrance that will be happening. It's under construction. Now, that's north of.

C

This entrance, so I think it will still open there. It's currently under.

C

Construction, I don't anticipate that it would affect this lot for the.

C

Development of this lot and then your first question. I think that it would.

C

Open on time, because it's not only us with the conveyance of the property but.

C

With tax credits, the developers also put tax credit, syndicators also put in place.

C

Requirements that the property milestones for the property to open up.

C

On time and lease up in a particular period of time that has to be met by the.

C

Developer in order for them to receive the credits said not correct jeff right.

C

Yes, there are very strict deadlines, so we will be putting the application in.

H

Again, we expect it to be mid-september. I don't know when allocation is going to.

H

Be yet hopefully before the end of the year, and if we are successful, we will be.

H

Full steam ahead to be able to close on it within that hundred and fifty days.

H

With our financing and as doris said, there are very strict requirements both.

H

From a statutory standpoint for the tax credit program, but also that we will.

H

Have from our investor that if we don't place it in service and start delivering.

H

Credits by with having it leased up appropriately, that will be on the hook.

H

For that, we definitely will make sure that we get those. Thank you.

A

Any other questions I have a question done. This is for staff, since this is my.

I

Second, medium so kind of getting my bearings on this side of it. Having.

I

Served for four years on planning commission, I see the other side after.

I

This has gone through and for the bill thing goes here, so I guess my question.

I

Is you know we're focusing on four ability in our community and we're.

I

Obviously, providing ten-year property tax abatement billing for one dollar tif.

I

Grant so when we stay affordable housing, what do we work from? I guess this is.

I

Actually, a question for whether be the petitioner in this case now, what is a.

I

Fort, what is the affordable range? What are you looking at? We are looking at a.

H

Mix of five different levels of affordability for the for the apartments.

H

From 30% of area median income to 80% of area, median income, so the ones that are.

H

At the lowest income will be primarily reserved for clients of stone belt and.

H

Then the others that are in the 50 60 70, 80 percent of the area, median income.

H

Which was based ago, we consider workforce housing, we're gonna, be open to.

H

The general public, okay and then you have those a perso or.

I

The market rate weeping at a few market rate also what that would entail.

C

Probably the limit for someone who is that person am I from one individual.

C

That's like fifteen thousand five hundred and fifty maybe 150, okay, okay,.

I

Versus the way that these these get done is that there's a report that happens.

F

After closing that the new owner would have to record, along with the title, to.

F

Certify that they're going to keep this next name you're a fort of look affordability. They have to check in with the handle to see what the latest ami.

F

What's gonna be affordable, so there are some checks and balances throughout that.

F

Affordability requirement that are required in terms of this general.

F

General procedure of the rdc they're- not this is because this is a contract.

F

That's being jointly answered by the rdc and okay. Thank you for that. I was. I.

I

Should ask that question before saying petitioner? I appreciate that.

C

Remember that, even though tax credits projects usually go anywhere from 15 to.

C

40 years, I'm a portability. This developer has agreed to keep this.

C

Project affordable for 99 years: oh wow, okay. We have done that before, where.

H

We've had the your typical 30 year: affordability period, that has an.

H

Extended use agreement upon it with the state and then for another one that we.

H

Did it's actually in perpetuity is part of a zoning for the property, so on that.

H

One and we try to assume something similar on this there's hooks in it both.

H

Wait once from the local government, their zoning or some other document that.

H

Your attorney wants to do for the 99 years, but then also the state, which is a.

H

Stricter one who are the first thirty years of it, okay, this is a question for.

I

Staff is the ten-year property tax abatement. Is that pretty standard or is.

I

That, specifically, because this this project is so, I value in terms of.

I

Affordable housing near switcher parking and the lot and here's the standard last.

G

Ten years standard all right, thank you, our that that's a tax on. Thank you for.

F

The question I would just briefly note to that this body is not granting the.

F

Tenured, regular governmental processes, so that's not yeah. I understand that.

I

Part I'm just under trying to grasp the ten year versus, because I find.

I

Commission, I thought was some that were five year after the fact. After going.

I

Through something, so I'm just trying to grasp that both sides here, so I.

I

Appreciate yeah, and I also want to add that the redevelopment commission would.

C

Be involved just like you were involved with another low-income housing tax.

C

Credit project that was built on redevelopment land, which is beeline.

C

Heights, we will also be bringing back to you updates on this project, as it.

C

Progresses, including, like you, have a look at the design that is developed.

A

Okay, all right! Okay, can I just ask want one last thing: I think it would be.

D

Interesting to maybe receive an updated schedule if you will or projected.

D

Timelines, as was laid out in the original packet, certainly based on the.

D

The changes and emergencies that we're all living through right now, I think it.

D

Would be interesting to receive that updated schedule? Okay, I will work on one.

C

With jeff, and we will include it in your packet, your next redevelopment.

C

Commission packet, okay, thank you.

A

Any other questions or comments from redevelopment commissioners, if not, I.

A

Can't we have a motion, this is david wolter, I'll move, adoption of resolution.

E

22:27 eric-san weiss. I second the motion.

A

Don griffin in favor eric this guy's, second sydney can arnie yeah, I'm in.

D

Favor david wolter: yes, both kappas yeah, some paper.

A

Okay motion is approved. Thank you very much. Thank you. Thanks, jeff have a good.

A

Morning, thank you. The next item of business is resolution.

A

20 28 approve of the lease addendum for college square mark parking lot, yeah.

A

Let's, let's talk about this, this is who's going to talk to us about this. I.

A

Can give you a brief overview so when the rtc purchased the college square.

F

Building a person pursuant to the leases that were in existence under robert.

F

Indigo was the previous owner of college square, had a lease agreement for two.

F

Parcels of the parking lot it takes up about a little less than half. I believe.

F

Of the parking lot, these are owned by private individuals, so we've been.

F

Leasing that land the former lease and and the two those.

F

Were on month-to-month status, they had expired so and with the help of the.

F

Guthrie, the corporation counsel for the city, we renegotiated a new agenda to the.

F

Lease and that's what this lease is for stored that parking lot. The interesting.

F

Thing about this addenda is that it does conclude a provision to purchase those.

F

Thoughts at the end of this next year from the event for the addendum sorry.

F

It's a senior, but this will. This will ensure that we can continue to serve all.

F

The tenants of college square currently, and so the parking lot will stay as it.

F

Is hey larry, but is there an agreed-upon price? No, you.

F

Would still forward for any purchase of property, it would still have to go.

F

Through the rdc procedures for these two parcels, so we have some appraisals but.

F

We would we would probably obtain new two appraisals at the end of the next.

F

Year and then take the average of those two appraisals that would set the.

F

Maximum price, as thus it has the owners given us a price that they that they're.

A

Comfortable with not my knowledge, but they weave, I.

F

Believe that we have discussed where the appraisals came in and they seem to be.

F

Comfortable with the fact that they are going to convey it to us, I can't really.

F

Speak any any further than that, I mean as that develops as we get closer to.

I

That day, certainly that's something that we would keep you apprised of again.

F

Because it involve the negotiation for real estate purchase. Probably do that.

F

Sort of thing in a executive session details, yeah, okay, okay, any questions.

A

Folks, a lariat cindy so is the year and the possibility of purchasing purchasing.

D

The property after the year is that kind of what drove the term.

D

I know previously there was ten year time on those leases, etc. Yeah. What drove.

F

The term for us I mean, there's a possibility of extension, obviously for.

F

Some reason we can negotiate or circumstances change at the end of this.

F

That'd, that's precisely winter of the drum it's. It's also allowing the owners.

F

To get comfortable with the idea, this has been in their family, they kind of.

F

This arrangement, for a long time so we're sensitive to that, and we want to.

F

Make sure that we do this in the best possible way for both parties? Oh that's.

B

The question I mean that direction larry, if I may, the just declared in ball terms.

B

Why way and another add another 42k to the to the ultimate cost to the city by.

B

Not negotiating for sale sooner, it's my understanding, aren't ready to sell at.

F

This point, so they do want this this extra year there there are one of the.

F

One of the wrinkles to this particular agreement is that, as I mentioned, this.

F

Have been in their family for years, and so now this is held by two siblings. That.

F

Are have to communicate with each other and come to agreement with each other, as well as with the city, and so that kind of adds an interesting.

F

Wrinkle to any potential sale. Thank you.

A

All right any other questions. All right can we have a motion. This is david.

E

Wolter I'd like to make a motion. We accept resolution 20 28 cindy can.

D

Arnie second, don griffin, I approve.

B

Eric's and elisa nicholas kappas, david wolter, yes, I approve okay. I think that.

D

Was everyone okay motion is approved? No yeah motion is approved. That's like.

A

That right, this is so weird. Isn't it.

A

Yeah that they're all in favor and the motion was approved. Okay, let me get back.

A

On here sorry, I couldn't remember my code to get back into maya. My phone here.

A

Okay, actually, I think that's that's it. If do we have any other general.

A

Discussion or business that we want to talk about. Are we good at even a jar.

A

I'll move for adjournment: this is david wolter, okay,.

A

That works thanks to everyone. Thank you. Thank you.

J

J