09/16/86 Board of Public Works Minutes

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REGULAR MEETING SEPTEMBER 16, 1986 APPROVE STANLEY COVELESKI REGIONAL STADIUM FINANCING DOCUMENTS: - FIRST AMENDMENT TO AGENCY AND ESCROW AGREEMENT - PURCHASE AGREEMENT - ESCROW AGREEMENT NO. 2 - SIGNATURE IDENTIFICATION CERTIFICATE Mr. Leszczynski advised that the above referred to documents were submitted to the Board at this time for approval and execution. In regards to the First Amendment to Agency and Escrow Agreement, Mr. Leszczynski advised that on May 20, 1986, the Board approved and executed an Agency and Escrow Agreement which appointed the Park Board and the Board of Public Works as agents for Security Pacific for the construction of the Stadium. The Agreement also established an escrow fund to receive the $5,250,000.00 from Security Pacific. Under the terms of the Agreement, the City is entitled to all earnings from the investment of the funds in escrow. The First Amendment to the Agency and Escrow Agreement adds certain language pertaining to compliance with Internal Revenue Arbitrage Regulations pertaining to earnings on the escrow investments. The Purchase Agreement submitted to the Board is in compliance with the commitment letter and replaces the prior requirement of a financial security bond and provides for the purchase of the facility from Security Pacific if it is not completed within twenty-four (24) months of the deposit of Security Pacific's funds in escrow. Escrow Agreement No. 2 creates a fund for certain deposits to be made by the City during the construction period pursuant to the terms of the Purchase Agreement. Finally, the Signature Identification Certificate identifies the signatures of the members of the Board of Public Works and certifies to the appointment and authorization of the members of the Board. In response to questions from the news media, Mr. Richard L. Hill, Attorney at Law, Parker and Jaicomo, 215 West Jefferson Boulevard, South Bend, Indiana, special counsel representing the City in the Stanley Coveleski Regional Baseball Stadium Project, stated that he is continuing to work toward the closing of this matter with Security Pacific National Bank but it has not yet been determined when closing will occur. Further, in response to a question of whether or not closing would occur until it is known whether Fair Tax, Inc. will file a Petition for Re -Hearing to the State Supreme Court, Mr. Hill stated that Security Pacific has not make a statement whether they would or would not close until that matter is resolved. Upon separate motions made by Ms. Barnard, seconded by Mr. Leszczynski and carried, each of the above referred to documents were approved and executed. APPROVE CHANGE ORDER NO. 1 - SKYWALK FROM CENTURY CENTER TO THE MARRIOTT HOTEL PROJECT Mr. Leszczynski advised that Wright Construction, P.O. Box 1306, Elkhart, Indiana, Contractor, and Cole Associates, Inc. 2211 East Jefferson Boulevard, South Bend, Indiana, Architect, submitted Change Order No. 1 indicating that the contract amount be decreased by $10,579.00 for a new Contract sum in the amount of $951,421.00. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, Change Order No. 1 was approved.