2008-06-05 Redevelopment Authority Minutes

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The South Bend Redevelopment Authority June 5, 2008 Meeting Minutes Rampola said the development agreement that the Authority has entered into with the Redevelopment Commission and Kite has tougher assignment language in it than this lease agreement. Mr. Rampola also pointed out that the Development Agreement was only in force for a couple of years while the project is being built. The lease that we are working on will last twenty five years. It seems reasonable, if ten or more years down the road after everything is built, that the Kite entity has the ability to sell out to another developer more easily since everything is built. The Authority will still be the one to give their approval as it relates to their ability to operate the facility. Mr. Alvarez said section two of the lease gives the landlord the right to mortgage the property. The tenant would have the second claim on that. Mr. Rampola said .that situation was fine since by statute the Authority does not have the right to mortgage a property. The Authority only needs to know that they can continue to receive the lease rental payments from the Redevelopment Commission. The Authority cannot assign any interest in the ground. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alvarez, the Authority agreed to table this item until the next meeting. b. Redevelopment Authority approval requested for Resolution No. 168. authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Century Center Project) .and regarding other related matters. Mr. Rampola said the difficult part of this transaction is that. the County issued bonds in 1992 for improvements at Century Center as well as parking for the Studebaker Museum, and these bonds need to be paid off. The 1992 bonds should be paid in part by a pledge of Hotel-Motel tax revenues, which occurred yesterday at the Hotel Motel Tax Board meeting. The portion of the old bonds that are not paid by the Hotel-Motel tax revenues will be paid off by the new bond proceeds. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alvarez, the Authority approved Resolution No. 168 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Century Center Project) and regarding other related matters. 4. STAFF REPORT Ms. Jennifer Laurent updated the Authority on the proposed hotel development, the REI - White Lodging partnership for the Saint Joseph and Jefferson Boulevard site. This project is basically the same as the Gameday project. The site, which is owned by the Redevelopment Commission, is not particularly conducive to a parking garage and getting circulation to be efficient. So, once again, we are looking to expanding the site a H:\WPDATA4IUTHORTY\060508. MIN.DOC