02-13-14 Redevelopment Commission Minutes

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South Bend Redevelopment Commission Regular Meeting — February 13, 2014 6. NEW BUSINESS (CONT.) C. Airport Economic Development Area (4) continued... Upon a motion by Ms. Schey, seconded by Mr. Inks and unanimously carried, the Commission approved Resolution No. 3207 appointing members to the Ignition Park Architectural Review Board. (5) Transfer Blackthorn Golf Course Debt Service Reserve Cash into Operations Cash Account. Mr. March noted that the Blackthorn Golf Course bond is paid off, there is $51,000 in the city's cash account. These funds originally came from the Operations Cash at Blackthorn, but sat in the debt service reserve account until final payoff. Since the operations cash is now with Billy Casper, our fiscal agent, it is appropriate to transfer the cash to Bill Casper. This action will not increase Blackthom Golf Course's budget. The money will still belong to the city, just like all of the operations cash, and will be tracked, reviewed and audited just like all city money. Staff requests approval of the transfer to Billy Casper Golf. Ms. Jones asked whether the management agreement we have with Billy Casper Golf contains an item for capital reserve. We have talked a lot about making sure they have set aside appropriate funds for large capital improvements. Ms. Leonard responded that the capital improvements are always part of the city budget. There is nothing in the agreement about reserving cash from operations for capital improvements. Every year when we approve their budget, there is barely enough to operate the course, never any extra for capital improvements. Mr. Varner suggested that setting up a capital account would result in an expectation each year that Billy Casper contribute to that account. That would at least stimulate the conversation. Ms. Leonard said staff could look at that for the next budget. Upon a motion by Mr. Varner, seconded by Mr. Inks and unanimously carried, the Commission approved the transfer of Blackthom Golf Course Debt Service Reserve Cash into Operations Cash Account managed by Billy Casper Golf. (6) Staff report on Ethanol Plant Mr. Fielding noted that DCI staff has had the privilege of working with Noble Americas through their acquisition of the shuttered Ethanol Plant. This has been a long and complicated project that our community will see come back to life in mid -2014. Noble Americas completed the acquisition process in late 2013 and immediately began completing their due diligence to assess (1) why the plant went bankrupt and (2) how to become for efficient through state of the art upgrades. It became increasingly obvious that if the plant is