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REGULAR MEETING (CONTINUED) SEPTEMBER 29, 1977 <br />He said he hoped the total impact would be greater downtown than just Century Mall. He said sto <br />were leaving the downtown area and we must reverse the trend. Council Member Taylor said he <br />supported some kind of revitalization of the downtown area. He said he felt this was an opportu <br />to keep a door open and allow some flexibility for potential redevelopment of the downtown area. <br />He said he supported the resolutions. Council President Parent said the negotiation meeting was <br />not secret. He indicated it was not open to the public. He said the Council was invited to the <br />meeting. He explained some of the things that took place at the meeting. Council Member Adams <br />asked Mr. Butler if he had a copy of the agreement that the Council could look at. Mr. Butler <br />indicated he did not have a copy of the agreement, just the rough draft. Council Member Adams <br />made a motion to recess, seconded.by Council Member Horvath. The motion carried and the meeting <br />was recessed at 5:26 p.m., and reconvened at 5:36 p.m. <br />Council President Parent asked Mr. Kevin Butler to read the agreement to the Council. Mr. Butler <br />read the following agreement: "The agreement would be between or among the Department of Re- <br />Development and the Civil City of South Bend and the investors, and the various investors would <br />sign the agreement individually. The first provision or paragraph would set forth the obligatior <br />of the investors; #l.the investors submit a bid to purchase and develop the property according <br />to the Urban Renewal Plan and the legal requirements for bidding which are established by State <br />law and Department of Housing and Urban Development requirements. The first objective is subject <br />to the following two conditions and only the following two conditions: #1 Redevelopment offers <br />the property for public bid by April 1, 1979; #2 That the minimum price established by the reuse <br />appraisals, immediately prior to offering the property for public bid, will not exceed $450,000. <br />The second obligation of the investor is that they will submit a security bond contemporaneously <br />with the signing of the agreement that will be in the form possibly of a letter of credit which <br />will provide that the lending institution that.issued it, or the bonding company, if it is a bon( <br />will pay to the Redevelopment Department $45,000 in the event the Redevelopment Department certii <br />to the lending institution or bonding company that the investors have breached their obligation <br />under the agreement. The next paragraph covers the obligation of the Department of Redevelopmeni <br />that.would be in the event the investors submit a bid and that bid is awarded by Redevelopment, <br />then Redevelopment will deed the..property to the developers by April 1, 19x80. The year after <br />the deadline for the bidding. The third paragraph would cover the obligations of Redevelopment <br />and /or the City. There would be two obligations: #1 In the event the investors submit a bid for <br />development of the shopping mall and this bid is awarded the City and /or Redevelopment will con- <br />struct a parking garage or garages in the area to service the Century Mall, among other business( <br />etc.,, within the area, and the parking garage or garages would contain not fewer than seven <br />hundred (700) spaces. The details with respect to location, configuration, the amount of free <br />parking, if any, that is something that would have to determined prior to the construction. The <br />City and /or Redevelopment is not committing to any of those points right now. The second ob- <br />ligation of the City and /or Redevelopment is that the City and /or Redevelopment, or both, will <br />develop the pedestrian area in the shopping mall area, subject to the submission of a bid for <br />a shopping mall and awarding of that bid. The details with respect to the location of that <br />pedestrian area, the configuration and design, the amenities, are details that will be worked <br />out prior to construction. The fourth paragraph will be to the effect that the agreement is <br />subject to approval by HUD and the City Council. The reason for approval, that is instead of <br />making HUD and the City Council parties to the agreement." <br />Council Member Adams asked if the seven hundred parking spaces had to be new spaces. Mr. Butler <br />indicated they would have to be new spaces. Council Member Adams asked how they arrived at <br />$450,000 for the minimum bid. Mr. Butler indicated -they used a figure of $3 per square foot. <br />Council Member Adams asked the price per square foot that was paid for Block Six. Mr. Butler <br />indicated it was ninety cents per square foot. Council Member Adams asked what money would be <br />used to acquire the property and pay for relocation. Mr. Butler indicated that they still had <br />$900,000 remaining from the sale of bonds, and they anticipated receiving the 2.1 million in <br />urgent need funds. Council Member Adams asked that if before anything can be done will those <br />funds have to come before the Council. Mr. Butler indicated the $900,000 would not have to come <br />before the Council. He said the 2.1 million would be approved by the Council on a line item <br />basis. Council Member.Adams asked what effect this would have on the existing parking garage bor <br />Mr. Butler indicated that he understood they will be refinanced as a package. She asked if he <br />had any idea of the effect on the tax rate on this refinancing. Mayor Nemeth indicated they had <br />talked with a consultant and if the City goes.with a non - revenue bond issue the interest rate <br />would be much more favorable. Council Member Serge asked Mr. Candler, one of the developers, <br />how much of an opportunity he was going to give the downtown merchants to go into the mall. <br />Mr. Candler indicated they have not contacted every one. He said they had letters of intent fror <br />some merchants. He said he would talk with any and all good tenants who want to go into the mall <br />Council Member Szymkowiak indicated that he felt that a downtown mall will be a key to a success- <br />ful downtown. He made a motion to adopt Resolution No. 583 -77, seconded by Council Member Taylor <br />Council Member Horvath asked if the $450,000 which is based on 150,000 square feet, included the <br />Odd Fellows Building. Mr. Brownell, Executive Director of Redevelopment indicated that the <br />150,000 square feet does not include the Odd Fellows. Building. Council Member Horvath indicated <br />he was disappointed that there were no blue prints or plans. He said he did not want to see any <br />more demolition in the downtown area. Council Member Adams made a motion to insert a new Section <br />V to read that the Common Council recommends there be no demolition of any buildings until a <br />bid is awarded for the Century Mall property. The motion died for lack of a second. Mrs. Hawle] <br />owner_ of Jefferson Book Store, indicated that no one had contacted her about going into the mal_ <br />Council President Parent indicated the process of downtown development has been going on for quit <br />awhile, and it would be difficult to turn around at this point. He said this probably will serv( <br />as a catalysis for future development. The resolution was adopted by a vote of seven ayes. Coun <br />Member Miller made a motion to amend Resolution No. 584 -77, by adding seven hundred spaces in <br />Section I, and.containing seven hundred spaces in Section II, seconded by Council Member Szymkow: <br />The motion carried. Council Member Taylor made a motion to adopt the resolution, seconded by <br />Council Member Szymkowiak. The resolution was adopted by a roll call vote of seven ayes. Counc: <br />Member Taylor made a motion to adopt Resolution No. 585 -77, seconded by Council Member Serge. <br />The resolution was adopted by a roll call vote of seven ayes. <br />There being no further business to come before the Council, unfinished or new, Council Member <br />Adams made a motion to adjourn, seconded by Council Member Dombrowski. The motion carried and <br />the meeting was adjourned at 6:10 p.m. <br />ATTEST: APPROVED: <br />7 <br />City Clerk President <br />s <br />ty <br />es <br />S. <br />it <br />