10/09/1981 Board of Public Works Special Meeting Minutes

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Ne j NI SPECIAL MEETING OCTOBER 9, 1981 A special meeting of the Board of Public Works was convened at 10:00 a.m., on Friday, October 9, 1981, by President John E. Leszczynski, with Mr. Leszczynski, Mr. Richard L. Hill and Mr. Joseph E. Kernan present. Also present was Deputy City Attorney James A. Plasters. The special meeting was called, with proper notification and posting given 48 hours in'advance, for the purpose of considering agreements and an improve- ment resolution relating to the construction of a proposed ethanol plant in South Bend by New Energy Corporation of Indiana, Inc. APPROVAL OF DEVELOPMENT AGREEMENT BETWEEN CITY AND NEW ENERGY CORPORATION Mr. Hill explained that the,city and New Energy Corporation had been attempting to reach a legally binding agreement which would represent what the city would be committed to do in terms of improvements on the proposed site and off the site for the construction of the ethanol plant by New Energy Corporation in South Bend. Mr. Hill stated that, as a result of many meetings, one of which was held on October 8th and which extended into the early morning, an agreement had been arrived at which was acceptable to both parties. He advised that the agreement committed the city to perform various work dealing with improvements on Maple Road and Calvert Street including water - mains, storm sewers, sanitary sewers, traffic signalization and utility relocation and all miscellaneous appurtenances necessary to facilitate the extension of public facilities for the proposed ethanol plant. He stated that the effect of the agreement as it related to New Energy Corporation committed the firm to construction of the plant at the site, assuming the Common Council also approved the agreement. He stated that the Council would be meeting in special session this date to consider the, agreement. Mayor Roger 0. Parent expressed his feelings concerning the finaliza- tion of an agreement acceptable to both parties which would result in the location of the ethanol plant in South Bend. He stated that a great deal of hard work had gone into this effort, and he was very pleased with the outcome. He felt it was an important moment for the City of South Bend. He thanked all the people who had helped make possible the location of the plant in South Bend. He also thanked Mr. Direnfeld and other officials of the corporation for their patience and faith in South Bend in dealing with the numerous problems which had thus far been encountered. Ile introduced Mr. Barry Direnfeld, President of New Energy Corporation. Mr. Direnfeld expressed his thanks to the administration for coming up with an acceptable agreement which would enable his firm to locate in South Bend. Ile felt the quality of work and amount of time spent by the administration in attempting to resolve the issues was very gratifying. Ile, too, was very pleased that an agreement had been reached and he was very happy about coming to South Bend. In compar- ing the South Bend location to the LaPorte location, Mr. Direnfeld stated that he felt there were many favorable aspects about the South Bend site that more than compensated for the higher tax base as compared to LaPorte. Ile stated that there was one remaining issue dealing with site de -mucking which needed to be resolved, but he felt future negotiations would result in satisfaction for both the city and his company. IIe explained that much more needed to be done before construction could actually take place. He stated that the Department of Energy had given him a commitment which was condi- tional to many detailed aspects, all of which he was hopeful could be completed so that closing could take place on February 1, 1982. Mr. Hill stated that the agreement provided, among other things, that construction be initiated within 30 days after the closing on the loan guarantees and total completion of the facility must be acom- plished 30 months after the start of construction. Upon a motion made by Mr. Hill, seconded by Mr. Kernan and carried, the Development Agreement was unanimously approved.