HomeMy WebLinkAbout10/14/82 Board of Public Works Special Meeting MinutesMR
SPECIAL MEETING OCTOBER 14, 1982
A special meeting of the Board of Public Works was convened at
9:30 a.m., on Thursday, October 14, 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 GRANT AGREEMENT (SOUTH BEND DEVELOPMENT CORPORATION)
A14D JOINT DEVELOPMENT AGREEMENT (NEW ENERGY COMPANY OF INDIANA)
Mr. Hill explained that, pursuant to the city's Urban Development
Action Grant which was awarded in a preliminary fashion on
September 30, 1982, the city must provide legally binding
commitments to the Department of Housing and Urban Development
by October 15, 1982, in the form of a Development Agreement
between the city and New Energy Company. He stated that the
city had previously entered into a Development Agreement with
New Energy in October, 1981, and that the new agreement which
he was submitting would rescind the previous agreement and
provide for items not covered in the original agreement. Those
items specifically pertain to the use of the UDAG funds and the
$5,000,000.00 for the South Bend Development Corporation to
(� finance the purchase of Special Limited Partnerships; the amount
of $2,637,845.00 to the Development Corporation to apply on the
Q cost of on -site improvements incidential to the development of
the facility; and the amount of $403,590.00 to the Development
Corporation to apply on the cost of engineering and contingency
costs. Mr. Hill advised that the city would enter into a Grant
Agreement with the Development Corporation in the total amount
of $8,041,435.00 to cover the above matters and, in turn, the
Development Corporation would execute a Loan Agreement with
New Energy. Mr. Hill stated that the Development Agreement the
Board of Public Works would execute would provide for all the
city's responsibilities relative to the project and New Energy's
responsibilities relative to the building of the facility. He.
further stated that the Development Agreement would be executed
by New Energy in Washington on October 15, 1982, and presented
to HUD immediately for its review and acceptance. He anticipated
release of the funds under the grant and pursuant to the agreement
on or about October 26, 1982. Mayor Roger 0. Parent expressed
his pleasure and satisfaction that the project has proceeded to
this point. He stated that he was very supportive of the project
and he thanked Mr. Hill for all his time and efforts.
Mr. Hill stated that Board approval would also be requested on a
Grant Agreement with the Development Corporation, which agreement
had been signed by the Development Corporation at a meeting held
earlier this date, and which would provide for a grant in the
amount.of $8,041,435.00 to the Development Corporation for
financing of the Special Limited Partnerships, on -site improvements
and engineering and contingency costs. He added that the Grant
Agreement provides that the Development Corporation would enter
into a Loan Agreement with New Energy by obtaining a secured
junior collateral lien at the rate of 8o per annum compounded
annually with payments to begin one year after the plant is in
operation or March 31, 1986. Mr. Hill stated that the Grant
Agreement was a condition for the release of funds under the UDAG
and would also be submitted to HUD for approval.
Upon a motion made by Mr. Kernan, seconded by Mr. Leszczynski and
carried, the following action was taken:
1. The Development Agreement executed by the Board
of Public Works on October 9, 1981, and New
Energy Company of Indiana, was rescinded;
SPECIAL MEETING
OCTOBER 14, 1982
2. A new Joint Development Agreement with New
Energy Company of Indiana, and the City of
South Bend as outlined by Mr. Hill was
approved; and
3. A Grant Agreement between the City of South
Bend and the South Bend Development Corpora-
tion for use of the UDAG funds was approved.
There being no further business to come before the Board, upon a
motion made by Mr. Leszczynski, seconded by Mr. Kernan and carried,
the meeting was adjourned at 9:45 a.m.
Joseph E. Kernan
ATTEST:
Barbara J. Bye s, Cle