10/14/82 Board of Public Works Special Meeting Minutes

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MR SPECIAL MEETING OCTOBER 14, 1982 A special meeting of the Board of Public Works was convened at 9:30 a.m., on Thursday, October 14, 1982, by President John E. Leszczynski, with Mr. Leszczynski,Mr. Richard L. Hill and Mr. Joseph E. Kernan present. Also present was Assistant City Attorney Carolyn Pfotenhauer. APPROVAL OF GRANT AGREEMENT (SOUTH BEND DEVELOPMENT CORPORATION) A14D JOINT DEVELOPMENT AGREEMENT (NEW ENERGY COMPANY OF INDIANA) Mr. Hill explained that, pursuant to the city's Urban Development Action Grant which was awarded in a preliminary fashion on September 30, 1982, the city must provide legally binding commitments to the Department of Housing and Urban Development by October 15, 1982, in the form of a Development Agreement between the city and New Energy Company. He stated that the city had previously entered into a Development Agreement with New Energy in October, 1981, and that the new agreement which he was submitting would rescind the previous agreement and provide for items not covered in the original agreement. Those items specifically pertain to the use of the UDAG funds and the $5,000,000.00 for the South Bend Development Corporation to (� finance the purchase of Special Limited Partnerships; the amount of $2,637,845.00 to the Development Corporation to apply on the Q cost of on -site improvements incidential to the development of the facility; and the amount of $403,590.00 to the Development Corporation to apply on the cost of engineering and contingency costs. Mr. Hill advised that the city would enter into a Grant Agreement with the Development Corporation in the total amount of $8,041,435.00 to cover the above matters and, in turn, the Development Corporation would execute a Loan Agreement with New Energy. Mr. Hill stated that the Development Agreement the Board of Public Works would execute would provide for all the city's responsibilities relative to the project and New Energy's responsibilities relative to the building of the facility. He. further stated that the Development Agreement would be executed by New Energy in Washington on October 15, 1982, and presented to HUD immediately for its review and acceptance. He anticipated release of the funds under the grant and pursuant to the agreement on or about October 26, 1982. Mayor Roger 0. Parent expressed his pleasure and satisfaction that the project has proceeded to this point. He stated that he was very supportive of the project and he thanked Mr. Hill for all his time and efforts. Mr. Hill stated that Board approval would also be requested on a Grant Agreement with the Development Corporation, which agreement had been signed by the Development Corporation at a meeting held earlier this date, and which would provide for a grant in the amount.of $8,041,435.00 to the Development Corporation for financing of the Special Limited Partnerships, on -site improvements and engineering and contingency costs. He added that the Grant Agreement provides that the Development Corporation would enter into a Loan Agreement with New Energy by obtaining a secured junior collateral lien at the rate of 8o per annum compounded annually with payments to begin one year after the plant is in operation or March 31, 1986. Mr. Hill stated that the Grant Agreement was a condition for the release of funds under the UDAG and would also be submitted to HUD for approval. Upon a motion made by Mr. Kernan, seconded by Mr. Leszczynski and carried, the following action was taken: 1. The Development Agreement executed by the Board of Public Works on October 9, 1981, and New Energy Company of Indiana, was rescinded;