MINUTES OF A SPECIAL MEETING OF THE MICHIGAN CITY REDEVELOPMENT COMMISSION JUNE 21, 2012

Transcription

1 MINUTES OF A SPECIAL MEETING OF THE MICHIGAN CITY REDEVELOPMENT COMMISSION JUNE 21, 2012 The Michigan City Redevelopment Commission met in a special meeting in the Common Council Chambers, City Hall Building, 100 East Michigan Boulevard, Michigan City, Indiana, on Thursday, June 21, 2012, at 4:15 p.m. local time; the date, hour, and place duly established for the holding of said meeting. CALL TO ORDER President Ken Behrendt called the meeting to order at 4:17 p.m. ROLL CALL A full Board was noted present for the record: Ken Behrendt, Lynne Kaser, James LaRocco, Larry Silvestri, and Joie Winski (5 present 0 absent). Staff in attendance: Executive Director John Pugh, Attorney Atley Price, and Secretary Debbie Wilson. MEMO OF UNDERSTANDING FOR DUNES PLAZA Randolph Rompola, Faegre Baker Daniels, came forward to address the Commission regarding the matter. Mr. Rompola explained that RESOLUTION 3-12 approves the Memorandum of Understanding (MOU) with Key Development and approves the form of the easement that relates to the demolition on what is referred to in the MOU as the Kohl s site and generally across the Dunes Plaza site. The MOU provides for the Redevelopment Commission to undertake demolition on the Dunes Plaza site with the buildings described in the MOU and undertake improvements with respect to the existing lift stations to essentially reconstruct and relocate the lift stations. Mr. Rompola explained that the easement before the Commission today relates to the demolition, and at some point in the near future he will come back before the Commission with a similarly formed easement agreement for the lift station work. The MOU provides for a demolition cost not-to-exceed $700,000 and with respect to the lift station it is not-toexceed $300,000. The Commission will take up consideration of the facade improvements in the future once a developer came to the Commission with leasing commitments for those existing buildings that would not be demolished. With regard to the proper order, Mr. Pugh confirmed that the Commission should consider Resolution 3-12 first, and then consider the MOU. Mr. Rompola replied that the resolution actually approves the MOU; adopting the resolution approves the MOU and easement for demolition.

2 A motion was made by Mrs. Winski to approve RESOLUTION 3-12 OF THE MICHIGAN CITY REDEVELOPMENT COMMISSION APPROVING THE FORM OF MEMORANDUM OF UNDERSTANDING AND AUTHORIZING ITS EXECUTION AND ATTESTATION WITH RESPECT TO AN ECONOMIC DEVELOPMENT PROJECT TO BE UNDERTAKEN BY KEY DEVELOPMENT IN THE CITY. The motion was seconded by Mr. LaRocco, with voice vote as follows: (Ayes): Ken Behrendt, Lynne Kaser, James LaRocco, Larry Silvestri, Joie Winski (Nays): None With a vote of 5 ayes and 0 nays, the motion was UNANIMOUSLY APPROVED. President Behrendt asked representatives of Key Development if they had any updates to share with the Commission. Chris Sotos came forward and thanked the Commission for the confidence and trust they placed in them. He said they understand it is a monumental commitment on the part of the Commission and they do not take it lightly. Mr. Sotos stated that they continue to receive good feedback from their perspective tenants. They are putting themselves in the position to close by late next week pending cooperation from the receiver of the property. Mr. Sotos said they hope to own the property next week and will keep the Commission informed. 12 ON THE LAKE LLC AGREEMENT FOR NEW OPERATOR Counsel Atley Price updated the Commission in regards to this matter and indicated that he has spoken with Attorney Barry McDonnell several times. He explained that the document before the Commission captures the intent of all parties involved and is in final form. Mr. McDonnell represents the Kolasa s who will be the new operators of 12 on the Lake, now known as Waters Edge. Mr. Price made note that Attorney Hale was present with the former operators of 12 on the Lake. Attorney Barry McDonnell addressed the Commission and introduced Mark and Amanda Kolasa, the new operators, and Mary Rodovich, the former operator. He explained that since the last meeting they have formalized and executed an actual signed lease agreement. His clients are in possession of the property and are developing their menu and hiring staff. They are awaiting final approval of the original lease with the 12 on Lake which required approval of the Port Authority. Attorney McDonnell continued that this agreement essentially allows his clients to utilize the prior operator s liquor license. This requires the Commission s consent due to their control over the liquor license. He explained that despite the fact they are using the prior operator s license, all responsibility (payroll, taxes, insurance, etc.) for management is on the new operators. They indemnify and hold not only the previous Page 2 of 5

3 operators harmless, but also indemnifying the Redevelopment Commission with regard to any potential claims that could result from the operation of the restaurant. Attorney McDonnell advised that the Management Agreement is satisfactory to Attorney Hale and Attorney Price and he therefore requested approval of the Redevelopment Commission. Mr. LaRocco asked for an explanation of how the license would be transferred again if ownership is changing. He pointed out that the ordinance states the license is not transferrable; but Attorney McDonnell referred to his clients as the new owners. Attorney Price explained it is his understanding that the Kolasa s are leasing with the option to purchase. When that happens there will be a formal purchase arrangement. The liquor license, as far as the Alcohol and Tobacco Commission (ATC) is concerned, will still retain the original 12 on the Lake as the owner. Mr. Price pointed out as an example that this would be no different than Red Lobster obtaining an operating agreement for their manager to manage and operate in a particular location. Whenever someone is operating any type of liquor sales other than the actual owner, this is the process. When Kolasa s become the owners they will in fact have to go through the formal process of transferring the license both through this Commission and the ATC as well. Attorney McDonnell agreed and added that because their relationship is a lease with option to purchase, they will have to send a copy of the Management Agreement to the ATC and designate Amanda Kolasa as the manager. He stated that they would not want to transfer the license until ownership of the building transfers. He explained from a sellers standpoint, if his clients did not fulfill one of their obligations under the lease and they were evicted, it would be much easier for the prior operator to take back and operate the facility if the license is still in their name rather than having to undo the whole process and come back to the Commission and the ATC. Mr. Silvestri noted on the second page of the Management Agreement that it states WHEREAS, LESSSOR has agreed to said transfer or re-issuance of the Permit to LESSEE at such time, subject to approval of the Commission and the Indiana Alcohol and Tobacco Commission. Mr. Silvestri acknowledged that it is by approval of the Commission and he strongly recommended approval of the transfer of the liquor license as it would be to Michigan City s benefit that they have a healthy and active restaurant in the former Yacht Club. He pointed out to Mr. LaRocco that his question is answered with the above language in the Management Agreement. As a point of clarification, Mr. Behrendt stated that he does not think they are transferring ownership of the license and asked Mr. McDonnell if that was correct. Page 3 of 5

4 Mr. McDonnell stated that is correct; they are not transferring ownership, just asking for the Commission s consent to the Management Agreement. A motion was made by Mrs. Winski to accept the Management Agreement for 12 on the Lake LLC and Waters Edge. The motion was seconded by Mr. Silvestri. Mr. LaRocco stated that he would support it reluctantly and expressed his disappointment in the process. He said he would support it to show everyone that he is for development; but he does not expect someone to come before the Commission in the future and ask for another extension to do work. He added that he would support it under those conditions and wanted to make his position perfectly clear. With a motion and second on the floor, voice vote was as follows: (Ayes): Ken Behrendt, Lynne Kaser, James LaRocco, Larry Silvestri, Joie Winski (Nays): None With a vote of 5 ayes and 0 nays, the motion was UNANIMOUSLY APPROVED. In another matter, Mr. Pugh stated that some time ago this Commission authorized Weaver Boos Consultants to apply for a community-wide assessment grant through the EPA. That grant was denied for Michigan City. It was extremely competitive. Mr. Pugh and Eric Neagu of Weaver Boos will have a debriefing session with EPA and will provide a full report at the next Commission meeting on July 16 th. Attorney Price provided a disclaimer for the record that an Executive Session was held prior to this meeting and discussion was limited to the items on the agenda; no votes were taken and there was no discussion of any other item. PUBLIC COMMENT None NEXT MEETING DATE President Behrendt stated that the next regular meeting is scheduled for July 16, He noted that it is the third Monday and is a change from the regular schedule. ADJOURNMENT The Chair entertained a motion to adjourn. A motion to adjourn was made by Mrs. Winski seconded by Mr. Silvestri and unanimously approved. Page 4 of 5

5 With the purpose of the special meeting having been met, President Behrendt declared the meeting adjourned at 4:35 p.m. /s/ Lynne Kaser, Secretary Page 5 of 5