08-23-04 Community & economic Development

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The South Bend Common Council's Standing Committee Report from the Community and Economic Development Committee The August 23, 2004 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Council Member Roland Kelly at 4:00 p.m.,in the Council Informal Meeting Room. Persons in attendance included Council Members Dieter, Kelly,Puzzello,Varner,Kuspa, Coleman, and Kirsits; Community and Economic Development Executive Director Sharon Kendall, Code Enforcement Director Catherine Brucker,Kenneth Fedder,Randy Rompola,Alan Feldman,Bill Schalliol,Andy Laurent, Gladys Kopola, Terry Bland of the South Bend Tribune, and Kathleen Cekanski-Farrand, Council Attorney. Council Member Kelly called for a presentation on Substitute Bill No. 48-04 which would authorize the city to issue taxable economic development revenue bonds for the Erskine Commons Project. Kenneth Fedder,the attorney for the Economic Development Commission introduced Randoph R. Rompola, an attorney with offices at 205 West Jefferson in downtown South Bend who made the presentation. He noted that the proposed ordinance provides that the principal amount of the bonds would not exceed $3.8 million and that interest on the bonds may not exceed 8%. He stressed that the City of South Bend would bear no responsibility or liability of any kind with respect to the payment of the principal and interest on the bonds are any related expenses. Anchor South Bend,LLC will be the borrower. He noted that the bond is necessary for onsite and infrastructure improvements(fill, compaction, etc)which will be taxable. The term of the bonds is 25 years payable from TIF. The Economic Development Commission met last Friday,August 20, 2004, and approved this transaction. Bill Schalliol spoke in favor. Council Member Coleman made a motion, seconded by Council Member Kuspa that Substitute Bill No. 48-04 be recommended favorably to Council. The motion passed. The Committee then reviewed Bill No. 04-92 which would authorize the Mayor to submit an application to HUD for an economic development initiative grant. Andy Laurent, an Economic Development Specialist,made the presentation. $397,640 would be used to implement the Studebaker/Oliver Redevelopment strategies,noting that at the next Council meeting an ordinance to obligate the funds would be heard. Council Member Kirsits made a motion, seconded by Council Member Kuspa that Bill No. 04-92 favorably to Council. The motion passed. There being no further business to come before the Committee, Council Member Kelly adjourned the meeting at 4:08 p.m. Respectfully submitted, Council Member Roland Kelly,Chairperson Community and Economic Development Committee KCF:kmf;Attachments Community and Economic Development Committee Meeting of August 23,2004 Page 1