Loading...
HomeMy WebLinkAbout9801-07 Appropriation from Motor Vehicle Highway #202 $1,000,000 for Douglas Road ExpansionORDINANCE No. Aa Passed by the Common Council of the Ciry of South Bend, Indiana October 22, 2~ 07 Attest: Attest:, 4. Ciry Clerk Presented by me to the Mayor of the City of South Bend, Indiana October 22, 20 07 President of Common Council Ciry Clerk Approved and signed by me October 24,. 20 U7 ~~~ ~u~ ~_ ~__.- Mme' ORDINANCE NO. ~ ~~~- ~7_ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $1,000,000 FROM THE MOTOR VEHICLE HIGHWAY FUND (FUND NUMBER 202) FOR THE EXPANSION OF DOUGLAS ROAD FROM STATE ROAD 23 TO THE MISHAWAKA CITY LIMITS STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana (the "City") desires to improve and expand Douglas Road from just west of its intersection with State Road 23 to the Mishawaka City limits (the "Project") to provide for increased economic development in the City and to improve the safety of Douglas Road for its residents. The City, by and through is Board of Public Works, and the South Bend Redevelopment Commission have negotiated an agreement with Douglas Road Retail Partners, L. P. (the "Developer"), pursuant to which the Developer commits to guaranteeing the repayment of the funds expended by the City under this Ordinance until the Developer or another party invests an additional $3,300,000 in the Douglas Road Economic Development Area (the "Area"). With the additional investment, it is anticipated that the tax increment financing revenues generated from the Area will be sufficient to repay the City the funds expended under this Ordinance. The project will improve the safety of Douglas Road and result in additional investment in the City. Accordingly, appropriating and expending funds on the Project is in the best interest of the health, safety and welfare of the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I. The following sum of money is hereby appropriated and ordered set apart from and within the Motor Vehicle Highway Fund for the acquisition and construction of the project expanding State Road 23 to the Mishawaka City limits. Account Number 202 Description Amount Motor Vehicle Highway Fund $1,000,000 SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Attest: City Jerk r-~ ~` ~~ Member of the C on Council Presented by me to the Mayor of the City of South Bend, Indiana, on the `L'~~ day of p~~~xnr , 2007, at (•,?-~ o'clock ~.m. _ ~ City Cler , ,~ Approved and signed by me on the ~ day of ~c,~~L~. , 2007, at ~y'~ o'clock Q .m. ~ o _g-~1 1st READING o1 ~S ~ r` PUBLIC HEARING l D'Z,L-`, c~.S ~`~~" 3rd READING \c7-Z~--' 1 ~'' NOT APPROVED REFERRED Mayor, City o outh Bend, Indiana Filed In Clerk's Qffice OCT - 3 2007 JOHN VOOADE CITY CLERK, S0. BEND, IN. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 67-07 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $1,000,000 FROM THE MOTOR VEHICLE HIGHWAY FUND (FUND NUMBER 202) FOR THE EXPANSION OF DOUGLAS ROAD FROM STATE ROAD 23 TO THE MISHAWAKA CITY LIMITS Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as amended as follows: Under Statement of Purpose and Intent lines 5 & 6, take out have entered into and insert have negotiated. Karen L. White Chairperson 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF PUBLIC WORKS October 2, 2007 Mr. Timothy Rouse President, Common Council Of the City of South Bend 400 County City Building South Bend, Indiana 46601 GARY A. GILOT, P.E. DIRECTOR OF PUBLIC WORKS PHONE 574/235-9251 FAx 574/235-9171 TDD 574/ 235-5567 Subject: Proposed Appropriation of $ 1 million Major Moves funds from Fund 202 for Douglas Road Improvements Dear Council President Rouse: This is in follow-up to the presentation I made at your last Council meeting committee session on this topic (copy attached). We are ready to appropriate funds to move this economic development project to fruition. The City of South Bend is excited to be partnering with Douglas Road Retail Partners, L.P. (Holladay Properties), hereinafter "Holladay" on improvements along the Douglas Road gateway to South Bend. The City, in partnership with Holladay, has designed (through Abonmarche Consultants) and bid plans for improvements to Douglas Road from SR 23 to the Mishawaka City limits (lowest responsible responsive bidder is Brooks Construction). Holladay has worked with us to expedite design and right of way acquisition and provisions for stormwater so that this two lane road can be transformed to two travel lanes in each direction plus center turn lane as needed and two dedicated left turn lanes at SR23 and Douglas. The overall project is $ 2 million with a plan to repay infrastructure loans from the Douglas TIF economic development area taxes. The TIF is anchored by the existing Memorial Home Care building. Holladay is the owner of that $ 4.75 million development with Memorial as the long term tenant of the building and the taxpayer. Holladay has further agreed to construct additional projects in the TIF valued at $ 3.3 million. The taxes will be sufficient to repay the $ 1 million Major Moves loan at 5 % and the $ 1.1 million ($ 100,000 as contingency for transaction expenses if needed) private loan at 5 % through Wells Fargo guaranteed by Holladay. The taxes on the economic development projects in this TIF will repay the loan sources plus interest to enable the infrastructure to be built sooner rather than later. The early action is important to public safety and as a catalyst for this area to develop the way we would all like to see it. The two lane road is in bad shape and has a lack of proper drainage. In this state the road is an impediment to seeing full ENGINEERING ENVIRONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN F. STANCATI 574/235-9251 574/277-8515 574/235-9316 574/235-9244 574/235-9322 FAx 574/235-9.171 FAx 574/277-8980 FAx 574/235-9007 FAx 574/235-9272 FAx 574/235-9728 ~~~~ development potential of this area flourish. We appreciate your support for the appropriation of the loaned capital from the smaller Major Moves distribution in Fund 202. It is consistent with our public policy plan to use Major Moves for road preservation and economic development related road investment. Sincerely, ~~~ -~ ~.~ V U ~'~.~ Gary A. Gilot, P.E., Public Works Director City of South Bend ~ ` \,01 ~~ x'~ ~~ ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $1,000,000 FROM THE MOTOR VEHICLE HIGHWAY FUND (FUND NUMBER 202) FOR THE EXPANSION OF DOUGLAS ROAD FROM STATE ROAD 23 TO THE MISHAWAKA CITY LIMITS STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana (the "City") desires to improve and expand Douglas Road from just west of its intersection with State Road 23 to the Mishawaka City limits (the "Project") to provide for increased economic development in the City and to improve the safety oi' Douglas Road for its residents. The City, by and through its Board of Public Works, and the South Bend Redevelopment Commission have-~r~tg~- ~~`'f ~ ~ j_ i~an agreement with Douglas Road Retail Partners, L.P. (the "Developer"), pursuant to ''~~' which the Developer commits to guaranteeing the repayment of the funds expended by the City under this Ordinance until the Developer or another party invests an additional $3,300,000 in the Douglas Road Economic Development Area (the "Area"). With the additional investment, it is anticipated that the tax increment financing revenues generated from the Area will be sufficient to repay the City the funds expended under this Ordinance. The Project will improve the safety of Douglas Road and result in additional investment in the City. Accordingly, appropriating and expending funds on the Project is in the best interest of the health, safety and welfare of the City and its residents. NOW, THEREFORE, BE 1T ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: Section I. The following sum of money is hereby appropriated and ordered set apart from and within the Motor Vehicle Highway Fund for the acquisition and construction of the project expanding State Road 23 to the Mishawaka city limits. Account Number Description Amount 202 Motor Vehicle Highway Fund $1,000,000 Section II. "this Ordinance shall be in full force and effect from and after adoption by the Common Council and approval by the Mayor.