HomeMy WebLinkAbout10/22/82 Board of Public Works Special Meeting Minutes11
SPECIAL MEETING
OCTOBER 22, 1982
A special meeting of the Board of Public lJorks was convened
at 9:30 a.m., on Friday, October 22, 1982, by President
John E. Leszczynski, with Mr. Leszczynski, Mr. Richard L.
Hill and Mr. Joseph E. Kernan present. Also present was
Assistant City Attorney Carolyn Pfotenhauer.
APPROVAL OF FIRST AMENDMENT TO JOINT DEVELOPMENT
AGREEMENT (NEW ENERGY COMPANY OF INDIANA)
Mr. Hill explained that the Board of Public Works had executed
a revised Joint Development Agreement with New Energy Company
of Indiana on October 14, 1982, which agreement rescinded the
previously -approved agreement of October 9, 1981, for construction
of an ethanol plant by New Energy. He stated that, following
a meeting with the Department of Housing and Urban Development
last week, certain amendments were made by HUD to the Urban
Development Action Grant, one of which is to be effective as
of October 20, 1982, and relates to the use of the $5,000,000.00
equity contribution that the South Bend Development Corporation
would be making to New Energy as a special limited partner.
Mr. Hill explained that, prior to last week, only a projection
was available as to what E. F. Hutton would be able to sell
on the market. Subsequently, it was learned that E. F. Hutton
had sold all of the partnership shares in the amount of
$32,000,000.00. Based on that sale, HUD requested a change
in the proportionate amount to $1.00 of UDAG funds for every
$7.00 of other equity funds. Upon a motion made by Mr. Kernan,
seconded by Mr. Leszczynski and carried, the First Amendment
to the Joint Development Agreement was approved.
Mr. Hill further explained that certain amendments were also
made by HUD to the Loan Agreement executed by the South Bend
Development Corporation and New Energy Company in order to
bring the agreement into compliance with Department of
Energy regulations. He noted that the agreement was not
consistent with the grant agreement in a few areas and was
subsequently amended. It was announced that the closing on
the project would take place on Tuesday, October 26, 1982.
There being no further business to come before the Board,
upon a motion made by,Mr. Leszczynski, seconded by Mr. Hill
and carried, the meeting was adjourned at 9:40 a.m.
Jo n E. Leszczyr/sk-11
Richard L. Hill
d
J&eerph E. Kernan
ATTEST:
Barbara J. Byers, Cl k ^�