11-26-18 Council Minutes - Laserfiche WebLink

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REGULAR MEETING November 26, 2018 APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A MEMORANDUM OF UNDERSTANDING REGARDING THE ST. JOSEPH COUNTY PUBLIC LIBRARY'S PROPOSED PROJECTS Councilmember Karen White made a motion to accept the Substitute version of Bill No. 18-71. Councilmember Oliver Davis seconded this motion which carried by a voice vote of eight(8)ayes. Councilmember Gavin Ferlic, chair of the Community Investment Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. James Mueller, Executive Director for the Department of Community Investment with offices located on the 14th floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Dr. Mueller stated, Good evening, Council. We bring this to you tonight after the discussions over the past few weeks. This is an exciting project in the downtown in partnership with the St. Joseph County Public Library and the St. Joseph County Community Foundation. Tonight, we will focus more on the financing pieces and the action items before and you, and then touch on a summary of some of our previous discussions. We are looking at what the project is, what the agreement and partnership looks like, what the City's financial position is, why we are well within our means to make this exciting project happen, and some of the community impacts that we hope to achieve should the Council approve this. First (1St), this is a partnership, as mentioned, with two (2) other entities. This is not common for all these types of entities to come together and work on a project like this. The overall project cost between the renovation of the existing building and the proposed new Community Education Center is between $36 million and $38 million. The Community Education Center itself is looking to be about a 38,000 square feet facility with an auditorium,meeting,office and new programing space.That component of the$36 million or$38 million is estimated to be between $18 million and $20 million. Dr. Mueller continued, To make this project happen, it is these three (3) entities coming together and trying to figure out how to get this across the finish line. The City's obligations in the Memorandum of Understanding before you is $4 million of net proceeds from the River West TIF funds. This is for the Community Education Center project, not the existing library facility. Also, the City is obligated to get necessary approval by December 2018 but these bonds are not anticipated to be issued for three (3) years. The MOU sets out a deadline of the first (1St) quarter of 2022. We anticipate those to be out in the latter half of 2021. The Public Library's obligations are $20 million of bond proceeds that go toward the entire project. Roughly $5 million will go to the Community Education Center and the balance would go to the existing facilities. They have also contemplated $2 million of furnishings for the Library. As the lead implementer of this project, they are required to consult with us on design and plans, initially, and have a commitment to maintaining the entrance on Main Street. As you recall, there was a proposal a year ago that would have removed that part of a renovation plan. With all the investments with Smart Streets and the vibrancy along that corridor, it was the wrong time to be taking the entrance off Main Street. We are happy the Library agrees and that this project will maintain that entrance. Finally, the Library will consent to developing their parking lot to the south of the existing building if certain criteria are met. Mainly, all their parking must be maintained within that block and it doesn't conflict with the mission of the Library or its activities. Dr. Mueller went on, The Community Foundation has agreed to fund $10 million for the Community Education Center project and also finance up to $4 million for the City contribution in the interim while construction is underway and before the City TIF Bond is issued in roughly three(3) years. In terms of where we are as the City with that, this was presented in September as part of the budget process by our Admin and Finance Department showing historic levels of debt issuance by different Councils. And, as you can see (referencing a slide in a presentation which is available in the City Clerk's Office), we are well within the norms there. Also, these are nominal dollars and are not adjusted by inflation. If you were to do that, that would actually be skewed even more favorably to where we are today. Within the funding source itself, the River West obligations, there are a number that are ending before 2025. You can see that on this chart (referencing a slide in the presentation). These include the Police and Fire Stations, the Century Center Project, the TJX Building,the Central Services Building on Sample and some remediation 4