07-28-03 Community & Economic Development

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July 28, 2003 Page 3 from the company's EDIT funds for the next three (3) years . He noted that the three (3) bills represent a total of$3,500,000 in appropriations form Fund#210 related to the Bosch project. No one from the public spoke in favor or in opposition to the three(3) Bills. Dr. Varner inquired if there is anything significantly different in the three (3) Bills. Mr. Case stated that only the$ 1.5 million with every thing being run through the Board of Public Works. Dr. Varner then made a motion, seconded by Council Member Kuspa that Bill Nos. 55-03, 56-03 and 57-03 be recommended favorably to Council. The motion passed. Council Member King then called for a presentation on Bill No. 03-78 which would provide preliminary approval of the issuance of bonds for the purpose of providing certain economic development facilities for Kite Capital,LLC Erskine Village Project. Donald E. Inks, Director of Economic Development, made the presentation. He noted that the proposed resolution would approve the issuance of up to $ 6 million in economic development revenue bonds for the Erskine Village project. The bond proceeds would be used for Phase I of the project including the demolition of the former Montgomery Wards buildings, and would address utility relocation and site improvements. Repayment of the bond would be from Tax Increment Financing (TIF) funds generated from the project. Phases II through IV would be financed by similar bonds int he future. The total project will have 510,000 square feet of retail and restaurant development. Mr. Inks stated that any shortfall would be assumed by the bond buyers. He noted that attorney Anne Bruneel and Bill Scalliol were also present to address questions. No one from the public spoke in favor or in opposition to the Bill. Dr. Varner inquired about the purchase arrangement. Ms. Bruneel stated that it is structured similar to an IRB which would be handled by the Economic Development Commission. Bonds proceeds would be loaned to the developer. Repayment would be through TIF. In no event would the City of South Bend be responsible for any defaults. Dr. Varner noted that he is in favor of development in his District and receives countless numbers of questions on the project on a daily basis. Following discussion, Dr. Varner made a motion, seconded by Council Member Kelly that Bill No. 03-78 be recommended favorably to Council. The motion passed. Bill Schalliol stated that the fencing was delivered today and the demolition work should begin by the end of this week or the beginning of next. The next Target store will have its grand opening on July 25, 2004. Council Member King then called for a presentation on Bill No. 03-79 which would amend the lease with the City of South Bend Building Corporation for the construction and equipping of a new fire station and the renovation and expansion of a police station and related matters. Anne Bruneel, an attorney with Baker and Daniels, made the presentation. She noted that the resolution would ratify the sale of lease revenue bonds to fund the police and fire facilities. The Community and Economic Development Committee