03-14-88 Human Resources & Economic Development

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that Bill No. 13-88 was basically a transfer Ordinance allowing monies to be transferred amoung various CD accounts. The reductions reflected unobligated balances at the end of the current contracts. She then briefly highlighted the increases. She noted that Bill No. 14-88 would appropriate additional CDBG Entitlement Funds which were anticipated. She then highlighted what the additional appropriations would accomplish. Councilman Puzzello made an inquiry with regard to day care subsidies and Jeff Gibney inquired into the Economic Development Capital Fund amounts. Councilman Luecke noted that overall this was basically a bookkeeping matter. It was also noted that $352 . 00 in Bill No. 13-88 would not be used in the Covelski Stadium project and this amount would be reduced from that project. Following further discussion, Councilman Slavinskas made a motion seconded by Councilman Coleman that Bill Numbers 13- 88 and 14-88 be recommended favorably to Council. The motion passed. The. Committee was then given a copy of substitute Bill No. 20-88 which dealt with an $11 million multi-family housing revenue bond involving the "Rain Tree Point Associates Limited Project. " Jon Hunt then introduced three individuals from Minneapolis, Minnesota namely Lynn Weber, Vice-President with Can-American, Mr. Kent E. Richey, an attorney with Leonard, Street and Deinard, and Robert Firth, an Investment Banker. Mr. Hunt noted that the Rain Tree Point Associates Limited Project was before the Council in 1985. There were various deadlines imposed by the Tax Reform Act and that this was one of thirteen projects considered nationally. In January, 1986 the Redevelopment Commission entered into a contract with the Developers for the sale of certain real estate. In 1987 and amendement to the sales contract was made. The Redevelopment Commission passed on the contract for the sale of land and at a meeting held earlier this afternoon they approved the transfer to Can-American South Bend Limited Partnership, a Minnesota limited partnership. Lynn Weber, of Can-American Realty Corporation of Minneapolis, Minnesota then provided further details with regard to a possible development of the area. She noted that her development company has been involved with the development of multi-apartment projects primarily in the Washington and Baltimore areas which have totaled over one hundred and eighty million dollars. She also noted that with regard to the hotel development that her company has been involved with projects totaling over one hundred million dollars primarily in the Naples, Florida area. They use a tax-exempt fund through Merrill Lynch and maintain an 2