07/29/86 Board of Public Works Minutes

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REGULAR MEETING JULY 29, 1986 Mrs. Mutzl was advised that the City does need the loan from Security Pacific National Bank to complete the stadium project and that Tax Increment Bond funds would also be utilized to begin this project. Mr. Richard L. Hill, Attorney at Law, Parker & Jaicomo, First Bank Building, 205 W. Jefferson, Suite 250, South Bend, Indiana, representing the City of South Bend on the Stanley Coveleski Regional Baseball Stadium Project, additionally advised Mrs. Mutzl that escrow funds that the City was maintaining as a requirement for closing on the Lease Purchase Agreement with Security Pacific National Bank would be utilized. He stated that those funds were to be held in escrow during the construction of the stadium. As the closing will apparently be delayed because of the pending lawsuit filed by Fair Tax, Inc., the funds could be used at this time. In response to where the monies came from to place in the escrow fund, Mr. Vance advised that sources include the cumulative capital development fund and the cumulative capital improvement fund. Mr. Joseph Guentert, 3510 Corby Bo levard, reminded the Board that all of the funds are contingent upon the final action of the court in the suit which Fair Tax, Inc. filed regarding the legality of the Lease Purchase Agreement with Security Pacific National Bank. He wondered what the action of the Board would be if the Lease Purchase was not finalized. Mayor Roger 0. Parent was present and advised that at this point in time it should be perfectly clear to the citizens that a baseball stadium will be built and the City will fulfill its commitment to the community and the franchise owners. He stated that if there were the extreme possibility that the City would lose the pending lawsuit, the City would obviously have to talk with the Redevelopment Commission regarding the funds utilized for this project. In response to Mr. Guentert's statement that the loan is not essential to build the stadium, Mayor Parent stated that the City does need the Lease Purchase arrangement to purchase and build the kind of facility the City can be proud of. Mrs. Mary E. Guentert, 3510 Corby Boulevard, South Bend, Indiana, stated that she would like to thank Mayor Parent for being Fair Tax, Inc.'s best fundraiser. Mr. Hill advised that $600,000.00 of the $4.1 million dollar Redevelopment District Tax Increment Revenue Bonds of 1985 can be utilized at this time due to the fact that all public improvements for this season have been contracted and therefore those monies are available at this time. These funds will be reimbursed to the Redevelopment Commission at the closing of the Lease Purchase Agreement with Security Pacific National Bank. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the above bid was awarded subject to funding and the appropriate Construction Contract was approved and executed subject to the filing of the appropriate insurance, Performance Bond and Labor and Materials Payment Bond. AWARD BID AND APPROVE C CENTURY CENTER TO THE M :ACT - SKYWALK FROM THE - FILING OF AFFIDAVIT OF H.G. CHRISTMAN In a letter to the Board, Mr. John E. Leszczynski, Director, Public Works, recommended that the bid of Wright Construction Corporation, 2707 Middlebury Street, P.O. Box 1306, Elkhart, Indiana, in the amount of $962,000.00 be awarded for the above referred to Project. Mr. Leszczynski advised that the low bidder, H.G. Christman Construction Co., Inc. has asked that their bid be withdrawn because of some errors made in calculating the bid which would no longer make them the low bidder for the 1