02-07-79 Council Special Meeting Minutes

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489 SPECIAL MEETING SEPTEMBER 27, 1979 A public hearing was held on the resolution at this time. Mayor Peter J. Nemeth gave a brief history of the downtown revitalization. He indicated that the City has 1.6 million dollars invested in this project. He indicated that this resolution would authorize the Board of Works to transfer the public improvements to FBT Bancorp, Inc., and RAHN Properties II pursuant to the agreement attached to the resolution. The Mayor indicated there was a typing error on page 2 of the second agrement in Section 2, through September 30, 2015 should read $27,000. The Mayor said that the bond counsel has indicated this resolution has to be adopted for them to be able to issue an opinion letter that the economic development bonds would be tax exempt. He indicated that the City obtained bond counsel and had an opinion that it was the valid way to approach this situation. He indicated that if improvements are not conveyed, then there would not be property taxes of approximately $150,000 per year; the City would be responsible for the maintenance of the atrium at a minimum expenses of $100,000 per year; the City would not receive $200,000 per year, escalating to approximately $80,000 at the end of the conveyance term; bond financing could not be obtained since all capital expenditures of the City within the last three years would have to count against the $20 million capital expenditure limit of each the hotel and the bank. He said that ownership of the land and improvements reverts to the City at the end of 99 years. He indicated they still had closing to go through and it will commence next week and the bonds will be sold for the Marriott Hotel.. He said that as soon as these acts are accomplished the City Attorney will submit a certification to HUD indicating that the project is committed and HUD will release the 7.6 million grant. He said they antici- pated this will be accomplished before ground breaking on October 19, 1979. Council Member Szymkowiak made a motion to adopt this resolution, seconded by Council Member Dombrowski. Council Member Adams asked why this did not have to go through the public bidding process. Mr. Brunner indicated that the public bidding process need not be used because the public purpose will still be continued. She asked the amount of parking spaces that will be in the garage. Mr. Brunner indicated 670; the Marriott will have 525 and the bank 150, approximately. She asked if both groups have signed a binding agreement that they are going with the project. The Mayor indicated they have signed contingent upon the sale of the bonds. Council Member Adams indicated that the Council had approved the sale of the park area to the First Bank. She asked Mr. Murphy, President of the First Bank, if that will remain park area or is it going to be a drive -in bank. Mr. Murphy indicated it will be maintained as a park area. He said that when they were trying to attrach ho.tels�,to South Bend there was a fear that if they made the in- vestment in this project that someone would come along and build something like a pizza parlor on that land. He said it was the bank's intention that it will be maintanined as a park area. He thanked the Council for the continuing support on the project. The motion carried on a roll call vote of eight ayes. There being no further business to come before the Council, Council Member Taylor made a motion to adjourn, seconded by Council Member Dombrowski. The motion carried and the meeting was adjourned at 4:25 p.m. ATTEST: APPROVED: City Clerk President