HomeMy WebLinkAbout06-12-17 Community Investment SOU T$
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OFFICE OF THE CITY CLERK
KAREEMAH FOWLER,CITY CLERK
COMMUNITY INVESTMENT JUNE 12, 2017 4:10 P.M.
Committee Members Present: Gavin Ferlic, Regina Williams-Preston, Oliver Davis,
Randy Kelly, Paul Tipps (citizen member)
Committee Members Absent: None
Other Council Present: Tim Scott, Jo M. Broden, Dr. David Varner, Karen White
Other Council Absent: John Voorde
Others Present: Aladean DeRose, Bob Palmer, Kareemah Fowler, Graham
Sparks
Presenters: James Mueller
Agenda: Bill No. 32-17-Bond Issuance for the Renaissance District
Studebaker Project
Committee Chair Gavin Ferlic called to order the Community Investment Committee meeting at
4:10 p.m. He introduced members of the committee and proceeded to give the floor to the
presenters.
Bill No. 32-17-Bond Issuance for the Renaissance District Stu d e 1)it ke I- Pro sect
James Mueller, Executive Director of Community Investment with offices on the 14'h floor of the
County-City Building, stated, Today is an exciting day. This is the financing package to bring
about the fagade improvements of Building Eighty-Four(84), a hallmark of the south part of our
downtown. The commitment of redevelopment funds stems back to the 2012 agreement that
guaranteed$3.5 million. In turn,the developer agreed to put in$10 million over ten(10) years
and the developer has already exceeded that via a quicker timeline. This phase would bring about
one hundred thirty (13 0) good-paying jobs. This would also unlock more jobs down the road. We
have done a lot of remediation over the last few years and now is the exciting time where we
actually get to see it and feel it. The City retained the council of Randy Rompola to help with the
financing piece and we also have the developer here to answer any questions you may have.
Committee Chair Ferlic opened the floor to questions from Committee or Council members.
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Committeemember Paul Tipps asked, When I was reading through the bond document, it talked
about $3.5 million coming from the State. Where is that coming from?
Mr. Mueller replied, This project also won a competitive grant from the Regional Cities
Initiative. So there is $3.5 million from the TIF funds committed back in 2012, and now$3.5
million from the Regional Cities Initiative. The balance is carried by the developer.
Committeemember Tipps followed up, The developer was listed as R-2 and is the managing
member Mr. Smith? And then the purchaser of the bond was the Regional Development
Authority of Northern Indiana, who is actually going to buy the bond?
Lisa Lee, Ice Miller LLP, stated, We are serving as bond council and Mr. Rompola of Barnes &
Thornburg is serving as the issuer's council. The Regional Development Authority of Northern
Indiana is actually purchasing this bond so it won't go to a third party financial institution. So
they will purchase the bond and those proceeds will then go in with the trustee to be used for the
re-skinning project. Once the proceeds are paid back, the Regional Cities Fund will add another
$3.5 million through the Redevelopment Authority as their Regional Cities match for the bond.
Committeemember Tipps followed up, In the indenture we talked about an affidavit and the
usual bond language for draws. I didn't see any indication there might be a requirement for
construction inspection or an architect or engineer to look at this before funds are distributed.
Ms. Lee interjected, Actually the Regional Development Authority and the City have to sign off
on payment of invoices, progress, and the construction before that gets submitted to the trustee
for actual payment. The City and the Regional Development Authority are maintaining the
control of that, along with the owner, to make sure all those things are done correctly before
payment.
Committeemember Tipps asked, Would it be up to the City to do their own independent
inspection?
Ms. Lee confirmed, Yes.
A representative from Ice Miller LLP stated, There will also be a third party consultant for
verification as well that will report to the Regional Development Authority.
Committeemember Dr. David Varner asked, What is the timeline from start to finish?
The representative from Ice Miller LLP replied, Construction will start, presumably as Lansing
closes, in August. The timeline predicted is to be done in 2018. It is a rather large project so it is
very weather-dependent.
Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor
of or in opposition to the legislation. There were none. He then turned the floor back to the
Committee for further discussion or main motion.
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Committeemember Randy Kelly made a motion to send Bill No. 32-17 to the full Council with a
favorable recommendation. This motion was seconded by Committeemember Regina Williams-
Preston which carried unanimously by a voice vote of five (5) ayes.
With no other business, Committee Chair Ferlic adjourned the Community Investment
Committee meeting at 4:15 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson