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5 <br />REGULAR MEETING <br />NOVEMBER 24, 1987 <br />lease purchase financing in order to review this Proposal. <br />Therefore, on October 20, 1987, the Board was advised that the <br />Department found it necessary to obtain information on the cost <br />of alternative financings since the PVN Proposal was for a lease <br />only and not a lease with an option to purchase. At that time, <br />the Board authorized City Controller Michael L. Vance to obtain <br />proposals for lease/purchase financing in conformity with revised <br />specifications. <br />Ms. Kolata advised that in response to that request, Mr. Vance <br />received seven (7) Proposals with PVN submitting a second <br />proposal regarding this matter. She stated that the Department <br />has been reviewing these Proposals and the questions they <br />raised. She indicated that the second PVN Proposal was found to <br />be appealing in that it offered the opportunity for the City to <br />own the garage and that it offered a good guarantee of the price <br />of the garage. However, there were some concerns regarding the <br />cost of financing. <br />Therefore, after reviewing these Proposals, it was determined <br />that the City would be better served by taking advantage of a new <br />law which would allow for the establishment of a Redevelopment <br />Authority which would publicly bid the construction of the <br />garage, sell bonds and enter into a lease with the Redevelopment <br />Commission. This process lowers the cost of financing and <br />provides for public bidding of the project which it is <br />anticipated will provide the best cost. <br />At this time, Ms. Kolata advised that the Department of <br />Redevelopment recommends that the Board reject the Proposal <br />submitted by Privatization Ventures on October 6, 1987 and reject <br />the Proposals received by Mr. Vance regarding the lease/purchase <br />financing of the garage. She stated that it will be recommended <br />to the Redevelopment Commission that they take steps to establish <br />a Redevelopment Authority to proceed with the design of the <br />garage. <br />In response to questions from the news media, Ms. Kolata advised <br />that as the City previously contracted with Walker and <br />Associates, who prepared the preliminary plans and schematic <br />design of the proposed parking facility, it is anticipated that <br />the City will ask Walker and Associates to prepare the <br />construction specifications and documents that will be needed for <br />this project. She further stated that the Redevelopment <br />Commission will go through the Board of Public Works to seek bids <br />for the construction of the garage. <br />She clarified that the Redevelopment Authority will be the entity <br />that will sell the bonds referred to above and they will be <br />repaid out of user fees, revenue from repayment of an Urban <br />Development Action Grant for the One Michiana Square Project and <br />tax incremental financing revenue with general obligation <br />back-up. City Attorney Eugenia S. Schwartz advised that general <br />obligation back-up on all leases is a typical procedure. Ms. <br />Kolata further advised that the Common Council is the entity that <br />must establish a three (3) member Redevelopment Authority with <br />those members being appointed by the Mayor. <br />In further response to questions, Ms. Kolata stated that the <br />anticipated cost of the garage is $3.5 to $4 Million dollars and <br />will consist of four hundred thirty-six (436) spaces. It is also <br />anticipated that the construction of the garage will be completed <br />in 1988. <br />Therefore, upon a motion made by Mr. Vance, seconded by Mrs. <br />DeClercq and carried, the recommendation of the Department of <br />Economic Development to reject the Proposal of Privatization <br />