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HomeMy WebLinkAbout11-30-10 Special Council Meeting Agenda & PacketAGENDA SOUTH BEND COMMON COUNCIL TUESDAY, NOVEMBER 30, 2010 7:00 P.M. 1. INVOCATION 2. PLEDGE TO THE FLAG 3. ROLL CALL 4. RESOLVE INTO THE COMMITTEE OF THE WHOLE TIME: BILL NO. 73 -10 WILL BE HEARD IN THE COUNCIL PORTION ONLY BILL NO. 73 -10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING $2,686,000 FROM COUNTY OPTION INCOME TAX (COIT) FUND #404 AND $520,000 FROM ECONOMIC DEVELOPMENT INCOME TAX (EDIT) FUND #408 FOR CAPITAL IMPROVEMENTS TO THE STANLEY COVELESKI REGIONAL BASEBALL STADIUM IN 2011 74 -10 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE OF REDEVELOPMENT DISTRICT REVENUE BONDS EXPECTED TO BE ISSUED FOR AND ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT AND PLEDGING CERTAIN REVENUES FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS (STANLEY COVELESKI STADIUM) S. BILLS, 'THIRD READING TIME: I10116m miffm 74 -10 THIRD READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE OF REDEVELOPMENT DISTRICT REVENUE BONDS EXPECTED TO BE ISSUED FOR AND ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT AND PLEDGING CERTAIN REVENUES FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS (STANLEY COVELESKI STADIUM) 6. ADJOURNMENT TIME: NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please give Reasonable Advance Request when Possible. CITY or SouTH BFND STEPHEN J. LIJECKE, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE GRE(;c D. ZIENTARA CONTROLLER November 3, 2010 Mr. Derek D. Dieter President of the Common Council of the City of South Bend 4`h Floor, County -City Building South Bend, IN 46601 Re: Ordinance to Authorize Recovery Zone Economic Development Bonds and to Appropriate Funds Therefrom Dear President Dieter: The attached Ordinance for your consideration would allow for the issuance of Recovery Zone Economic Development Bonds of up to $4,980,000 for the improvement of Coveleski Stadium. The Ordinance also provides for the debt service on these bonds to be paid by revenues from the Professional Sports and Convention Development Area (PSCDA). In the event the PSCDA revenues are not sufficient, the Council is also approving a pledge of COIT revenues. These bonds would have a term not to exceed 20 years. Proceeds of the bond would provide part of the funding necessary to make the planned improvements at Coveleski Stadium. Total improvements are estimated to cost $9,575,445, plus issuance costs of $120,000 and a debt service reserve of $480,000, bring the total to $10,175,445. In addition to the bond proceeds, TIF resources of $1,989,445 have been committed by the South Bend Redevelopment Commission. The remaining funding for the project is proposed to come from COIT ($2,686,000) and EDIT ($520,000). Improvements planned for Coveleski Stadium are part of a larger plan for the mixed use development of the Coveleski Neighborhood, which was previously shared with the Council. These improvements will deal with maintenance needs of a facility built in 1987, create greater connectivity with the downtown, address needed facility improvements, and provide for significantly expanded use of the Stadium by the community. Mayor Stephen J. Luecke will present this bill to the Common Council at the Council assigned committee meeting and at the public hearing. COUNTY -Carr BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONF 5741235 -9216 FAx 5741235 -9928 TDD 574/235 -5567 , A4�1 President Dieter Page 2 November 3, 2010 City Administration requests Common Council a favorable consideration and passage of this spending ordinance bill. cc: Stephen J. Luecke Jeff Gibney Dorl Inks Respectfully submitted, Gregg V.01entana Controller b. ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE ISSUANCE OF REDEVELOPMENT DISTRICT REVENUE BONDS EXPECTED TO BE ISSUED FOR AND ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT AND PLEDGING CERTAIN REVENUES FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SUCH BONDS (STANLEY COVELESKI STADIUM) STATEMENT OF PURPOSE OF INTENT The South Bend Redevelopment District (the "District ") has been established by the City of South Bend, Indiana (the "City "), which District is a special taxing district having the same boundaries as the City and governed by the South Bend Redevelopment Commission (the "Commission ") under the provisions of the Redevelopment of Cities and Towns Act of 1953 which has been codified in I.C. 36 -7 -14 et seq., as amended from time to time (the "Redevelopment Act "). The Commission has previously designated and declared an area in the City known as the Central Development Area to be a redevelopment area and an allocation area pursuant to the Act for purposes of tax increment finance which area has been amended from time to time (the "Area "), and the Commission has previously adopted a redevelopment plan for the Area which has been amended from time to time. The City has also previously designated a Professional Sports and Convention Development Area pursuant to I.C. 36 -7 -31.3 et seq., as amended from time to time (the "PSCDA Act "), in an area of the City to include that portion of the City where Coveleski Stadium (the "Stadium ") is located for the purpose of capturing "covered taxes" as such term is defined by Section 4 of the PSCDA Act (the "PSCDA Revenues "). The Commission is considering undertaking certain local public improvements in the Area, such local public improvements to include certain improvements to the Stadium, which is owned by the City by and through its Parks Department (collectively, the "Project "). In order to pay for a portion of the Project, the Commission is further considering the issuance of special revenue bonds of the District pursuant to Section 25.1 of the Redevelopment Act in an aggregate principal amount not to exceed Four Million Nine Hundred Eighty Thousand and 001100 Dollars ($4,980,000.00) (the "Bonds "). The Commission has adopted a preliminary bond resolution at its meeting on November 2, 2010, authorizing the issuance of the Bonds. The Bonds, if and when issued, would be payable from the PSCDA Revenues and, to the extent that such revenues are ever insufficient to pay the principal of and interest on the Bonds, from County Option Income Tax Revenues ( "COIT Revenues ") received by the City to the extent pledged for such purpose by the Common Council of the City ( "Common Council ") pursuant to this Ordinance. 8DDB0I 64019680 The American Recovery and Reinvestment Act of 2009 (the "Stimulus Act ") added Sections 140OU -1 through and including 140OU -3 to the Internal Revenue Code of 1986, as amended (the "Code "), which authorized local governments to designate and issue Recovery Zone Economic Development Bonds pursuant to volume cap allocated among the various states and counties and large municipalities within the states based upon relative declines in unemployment in 2008 to finance certain capital expenditures paid or incurred with respect to property located in a designated recovery zone and certain other expenditures identified in Section 140OU -2 of the Code (each of such expenditures being referred to herein as a "Qualified Economic Development Purpose "). The City received an allocation for Recovery Zone Economic Development Bonds of Four Million Nine Hundred Eighty -three Thousand and 00 /100 Dollars ($4,983,000) (the "Volume Cap "). The Common Council previously adopted Resolution No. 4019 -10 on March 22, 2010, designating the entire geographic area of the City as a Recovery Zone for purposes of Section 1400U -1(b) of the Code, which would include the Area and the Stadium. The Project qualifies as a Qualified Economic Development Purpose. Issuance of the Bonds as Recovery Zone Economic Development Bonds will permit the District to receive a credit from the United States Treasury in an amount equal to 45% of the stated interest to be paid on such Bonds as provided by Sections 140OU -2 and 6431 of the Code. It is expected that the Bonds may be issued as Recovery Zone Economic Development Bonds if that designation provides the lowest net interest rate. The Common Council deems it in the best interest of the City and its citizens and of public utility and benefit: (a) that the District issue the Bonds, the source of payment for the principal of and interest on which shall be the PSCDA Revenues and if such PSCDA Revenues are insufficient then from the COIT Revenues and (b) to pledge the PSCDA Revenues received by the City for the payment of the principal of and interest on the Bonds and also pledge the COIT Revenues distributed to the City for such purpose in the event the PSCDA Revenues are insufficient, provided that such Bonds shall not be issued (i) in an aggregate principal amount that exceeds Four Million Nine Hundred Eighty Thousand and 00 /100 Dollars ($4,980,000) and (ii) for a term that exceeds twenty (20) years. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. The Common Council does hereby authorize and approve the issuance of the Bonds by the Commission for and on behalf of the District in an aggregate principal amount not to exceed Four Million Nine Hundred Eighty Thousand Dollars ($4,980,000.00) for a term not to exceed twenty (20) years, the source of payment for the principal of and interest on which shall be the PSCDA Revenues and if the PSCDA Revenues are not sufficient, the COIT Revenues. To provide for the issuance of the Bonds for or on behalf of the District for the purpose of financing a portion of the costs of the Project, the Common Council does hereby approve and irrevocably pledge the PSCDA Revenues received by the City for the payment of the principal of, premium, if any, and interest on the Bonds (the "PSCDA Pledge "). In the event the PSCDA Revenues are not sufficient, the Common Council does hereby approve and -2- BDDBOI 6401968v 1 irrevocably pledge the COIT Revenues for the payment of the principal of and 'interest on the Bonds (the "COIT Pledge" and collectively with the PSCDA Pledge, the "Pledge "). Section III. The foregoing Pledge shall continue irrevocably during the period in which the Bonds remain outstanding. The provisions hereof shall be construed to create a trust in the PSCDA Revenues and the COIT Revenues described herein and the provisions hereof are made in accordance with Indiana Code 5- 1 -14 -4. This Ordinance shall not be repealed or amended in any manner which would serve to adversely affect the Pledge made herein by the Common Council on behalf of the City. The Mayor, Controller, and the Clerk are hereby authorized to execute such documents as may be necessary in connection with the issuance of the Bonds to evidence the Pledge. The Bonds shall not constitute a corporate obligation or indebtedness of the City but shall constitute an obligation of the District. Section IV. Only in the event the PSCDA Revenues are not sufficient to pay the principal of and interest on the Bonds, the COIT Revenues shall then be used to pay the principal of and interest on the Bonds. The COIT Pledge shall be on a parity with any outstanding indebtedness or lease rental obligations payable from such COIT Revenues (the "Prior Obligations "). Section V. The City reserves the right to enter into additional leases or authorize and issue bonds, payable out of its COIT Revenues, ranking on a parity with the amounts payable under the Prior Obligations and the COIT Pledge described herein, for the purpose of financing the cost of additional projects (the "Parity Obligations "). The authorization and issuance of Parity Obligations shall be subject to the following conditions precedent: (a) Rental payments under all Ieases and the principal of and interest on all bonds, which are, respectively, in accordance with their terms, payable from COLT Revenues shall have been paid in accordance with their terms. (b) All required deposits into the COIT Obligations Fund and the COIT Reserve Fund shall have been made in accordance with the provisions of this Ordinance and the terms of the Prior Obligations. (c) Either: (1) the COIT Revenues distributed to the City in the fiscal year immediately preceding the entering into or issuance of any such Parity Obligations shall be not less than one hundred thirty-five percent (135 %) of the maximum annual interest and principal requirements of all the then outstanding obligations, including without limitation the Prior Obligations, payable from amounts that the City receives from COIT Revenues and the additional Parity Obligations; or (2) the COIT Revenues distributed to the City pursuant to the Act for the first full fiscal year immediately succeeding the issuance of any such Parity Obligations shall be projected by a certified public accountant to be at least equal to one hundred thirty -five percent (135 %) of the total of the maximum annual rentals or interest and principal requirements of all the then outstanding obligations including without limitation the Prior Obligations, payable from amounts that the City receives from COIT Revenues and the Parity Obligations proposed to be issued. 5.1 BDDBOI 6401968v1 For purposes of this subsection, the records of the City shall be analyzed and all showings prepared by a certified public accountant or independent financial adviser employed by the City for that purpose. (d) Lease rentals on any leases and the principal of and interest on any bonds which constitute Parity Obligations shall be payable semiannually on the fifteenth days of January and July in the years such amounts are payable. Except as otherwise provided in this Section V, so long as the City is obligated to make payments under any Prior Obligations, no Parity Obligations pledging any portion of the CO1T Revenues distributed to the City shall be authorized, executed or issued by the City except such as shall be made subordinate and junior in all respects to the payments made under the Prior Obligations. Section Vl. 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 Clerk Member, South Bend Common ouncil tR jj � Presented by me to the Mayor of the City of South Bend on the of , 2010, at _ o'clock p.m. City Clerk Approved and signed by me on the day of , 2010, at o'clock m. 1 st s "cEAG9NG t t e—u) J rd RL.Ail'NG NOT AFTROY0. RHEUM . PASSED . BMW] 640196 90 Mayor, City of South Bend -4- 1� %j�j� k7 LL �tJ CITY day CITY OF SouTH BEND STaaPHFN J. LUECKE, MAYOR DEPARTMENT OF ADMINISTRATION AND FINANCE GREGG D. ZiENrAR COMMOUER November 3, 2010 Mr. Derek D. Dieter President of the Common Council of the City of South Bend 0 Floor, County -City Building South Bend, IN 46601 Re: Ordinance of the Common Council Appropriating Certain Monies for Capital Improvements to the Stanley Coveleski Regional Baseball Stadium in 2011 Dear President Dieter: The referenced subject matter bill is being submitted to the Common Council in tandem with an ordinance approving issuance of Recovery Zone Economic Development Bonds and the appropriation of bond proceeds. The total combined monies from the bond proceeds and from other funds will be expended for improvement and renovation to the Stanley Coveleski Regional Stadium. These renovations will enable broader, year -round use of the ballpark, expanding its economic impact and creating potential development sites for housing and commercial /retail users. It is the belief of City Administration that a renovated stadium and environs is in the best interest of the central downtown district and the South Bend Community. This spending appropriation bill requests $2,686,000 from County Option Income Tax (COIT) Fund #404 and $520,000 from Economic Development Income Tax (EDIT) Fund #408, both for spending in fiscal 2011. Monies are available within the COIT and EDIT funds, from excess cash_ balances and unspent COIT and EDIT revenues from prior periods. This bill is submitted to Common Council for first reading at the November 8, 2010 Council meeting, with second reading and public hearing requested for the November 22, 2010 Council meeting. City Administration requests that the bill be continued from the November 22, 2010 Council meeting to the first Common Council meeting in January, 2011 for third reading and Council vote. This delay is being requested to ensure compliance with the State of Indiana DLGF that post 2011 budget approvals not occur before the beginning of the fiscal 2011 year. The total project costs defined are $10,175,445, identified in Exhibit "1" attached, and will be funded from the following sources: COUNTY -Crrr BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 466 01 -1830 PHONE 574/235 -9216 FAx 574/235 -9928 TDB 574/235- 5567�i�: o. President Dieter Page 2 November 3, 2010 Redevelopment Commission Board SBCDA TIF & SBCDA 2003 Bond COIT Fund EDIT Fund Total Funding $ 4,980,000 Bond issue $ 1,989,445 Cash on hand $ 2,686,000 Cash on hand $ 520,000 Cash on hand $10,175,445 The Redevelopment Commission Bond to be issued will utilize Federal Recovery Zone Development Bond dollars available to the City of South Bend. The total recovery bond capacity available to the City is $4,983,000. The bond issue is slightly below the available amount due to bond market requirement of issuance in minimum increments of $5,000. Built for $11 million in 1987, the 5,000 -seat Stanley Coveleski Regional Stadium is worth an estimated $35 million to $40 million today. The stadium is owned by the City of South Bend and managed by the Parks and Recreation Department, which authorizes use of the facility to the South Bend Silver Hawks, a Class A minor league baseball franchise. Approaching its 1.5h anniversary, Coveleski Stadium requires reinvestment to continue to meet standards for minor - -league baseball play. The stadium has not attained minimum lighting standards for the past few years, the playing field needs replacement to address drainage issues, the stadium is out of compliance with the state required number of restrooms, and providing an indoor hitting and pitching facility will bring the stadium on par with other Midwest League facilities. Mayor Stephen J. Luecke will present this bill to the Common Council at the Council assigned committee meeting and at the public hearing. City Administration requests Common Council a favorable consideration and passage of this spending ordinance bill. Respectf y submitted, Gregg D. i ntara Controller cc: Stephen J. Luecke Jeff Gibney Don Inks g ' Attachments: Exhibit "1" — Project source and use of funds financial state rhent Exhibit "2" — Facts about Stanley Coveleski Regional Stadium AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROPRIATING $2,686,000 FROM COUNTY OPTION INCOME TAX (COIT) FUND #404 AND $520,000 FROM ECONOMIC DEVELOPMENT INCOME TAX (EDIT) FUND #408 FOR CAPITAL IMPROVEMENTS TO THE STANLEY COVELESKI REGIONAL BASEBALL STADIUM IN 2011 STATEMENT OF PURPOSE AND INTENT Built for $11 million in 1987, the 5,400 -seat Stanley Coveleski Regional Stadium is worth an estimated $35 million to $40 million today. The stadium is owned by the City of South Bend and managed by the Parks and Recreation Department, which authorizes use of the facility to the South Bend Silver Hawks, a Class A minor league baseball franchise. Approaching its 25'h anniversary, Coveleski Stadium requires reinvestment to continue to meet standards for minor - league play. The stadium has not attained minimum lighting standards for the pass few years. The grass field needs replacement to address drainage issues. The stadium is out of compliance with the state required number of restrooms. Providing an indoor hitting and pitching facility will bring Coveleski Stadium up to par with other Midwest League facilities. This ordinance is submitted in tandem with a bond issuance and appropriation ordinance, the total combined funds from which will be used for much needed improvement and renovation to the Stanley Coveleski Regional Stadium. These renovations will enable broader, year -round use of the ballpark, expanding its economic impact and creating potential development sites for housing and commercial /retail users. A renovated stadium and environs is in the best interest of the entire South Bend Community. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION 1. The sum of Two Million Six Hundred Eighty -Six Thousand Dollars ($2,686,000) be and hereby is appropriated from County Option Income Tax (COIT) Fund (#404) for capital improvements to the Stanley Coveleski Regional Baseball Stadium in 2011. SECTION 11. The sum of Five Hundred Twenty Thousand Dollars ($520,000) be and hereby is appropriated from Economic Development Income Tax (EDIT) Fund ( #408) for capital improvements to the Stanley Coveleski Regional Baseball Stadium in 2011. SECTION 111. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Member of the Common Council at n6 ¢ ,f E11-t13 .)� .,.. !4.3 rig e;� � and Attest. City Clerk. Presented by me to the Mayor of the City of South Bend, Indiana on the . ...day of 2—, at o'clock M. —ml r U City Clerk Approved and signed by me on the day of , 2_, at o'clock Mayor, City of South Bend 0 0 o o O O O O O O O O O O O O O O y.. 0 0 000000000000OOOOOOOOOOaO 0 000000c>00000000000000000 C o 0 0 4 0 0 O toOtoL cn d 0 cV N OOOL()(qLo- BOO 0- in, L? 00LO0 0 LO 0) N l� I- d Lo 0 LOCIJ ( CO It qT 0m0 0 d U) N N CO lry E LO (o ' Y cr! N .- .- Co w- LO c�7 Cl) ,- 0) T1 LT) W ,- •= �- of vi N €.L a) O _ p C fn :UD 2) 00 (� r 01 a) ID Lo i7 �? •� N cE�a U 0 co U V oQ 0 0 O d m � � `�•R w xo ` 'O CL v m� O j p oti gU 0 OL m i Exhibit Ii FACTS ABOUT STANLEY COVELIESKI REGIONAL STADIUM Built for $11 million in 1987, the 5,000 -seat Stanley Coveleski Regional Stadium is worth an estimated $35 million to $40 million today. The stadium is owned by the City of South Bend and managed by the Parks and Recreation Department, which leases the facility to the South Bend Silver Hawks, a Class A minor league baseball franchise. When it first opened for baseball in 1988 to host the South Bend White Sox, Coveleski Stadium quickly gained a reputation as "the grandfather of the modern ballpark," according to Bali ParkReviews.com. Its design template inspired other ballparks like Baltimore's Oriole Park at Camden Yards and Cleveland's Jacobs Field, which were built in the heart of downtowns and urban neighborhoods. Approaching its 25'h anniversary, Coveleski Stadium requires reinvestment to continue to meet standards for minor - league playa The stadium has not attained minimum lighting standards for the past few years. The grass field needs replacement to address drainage issues. The stadium is out of compliance with the state required number of restrooms. Providing an indoor hitting and pitching facility will bring the stadium up to par with other Midwest League facilities. Coveleski is the fifth oldest stadium in the Midwest League with 12 stadiums built after the Cove (with most recent costs ranging from $20 million to $33 million.) The City of Fort Wayne, for example, demolished suburban Memorial Stadium built six years after `The Cove" to build a new $30.8 - million Parkview Field downtown in 2009. The Cove's proposed $9.75 million renovation is less than recent Midwest League renovations of $10.5 million in Kane County, Ill., and $12.5 million in Davenport, Iowa. In 2007, the City of South Bend began discussions with Cove architect HOK Sport (now Populous) to enhance the stadium facility, create greater connectivity with downtown and foster economic - development opportunities in the surrounding neighborhood. This effort coincided with the planned relocation of the Gates automotive dealership to Erskine Commons. Since then, the City has acquired nearly 15 contiguous acres of property surrounding the stadium as part of a strategy to encourage new, mixed -use development. `The Cove" has drawn more than 4 million fans since 1987, offering 70 days of family entertainment downtown. The economic impact of visitors for the home -game schedule alone reaches nearly $700,000 annually. In addition, the Professional Sports Development Fund enables the City to capture as much as $400,000 annually in sales tax revenue, which would otherwise go to the state. The renovations will enable broader, year -round use of the ballpark, expanding its economic impact and creating potential development sites for housing and commercial /retail uses. Initial improvements in the 2010 season included renovated restrooms, drainage improvements, new padding for the outfield wall and a new backstop net. Projects funded by the Recovery Zone Economic Development Bond proceeds and other sources include: • A new centerfield entrance, ticket office and concessions area. • An expanded concourse with 360 - degree seating. • Basic facility upgrades to the scoreboard, sound system, lights, mechanical systems, restrooms and food- service areas. • Major overhaul of the field drainage system with a new artificial turf field, • Upgraded fan amenities including a picnic area, Kids Zone and splash pad, new concourse -level suites, a left field home run area and a refurbished Upper Deck area. • Renovated dugouts and locker rooms for player safety and a new training facility. • A new team store in the renovated B'Nai Yisrael (Sons of Israel) Synagogue.