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HomeMy WebLinkAbout07-27-04 Redevelopment Commission MinutesA Aj A SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING July 27, 2004 8:00 a.m. Presiding: Marcia I. Jones, President 1. ROLL CALL Members Present: Members Absent: 227 West Jefferson Boulevard South Bend, Indiana Ms. Marcia Jones, President Mr. Philip J. Faccenda, Vice President Mr. Robert W. Hunt Mr. Hardie Blake Mr. Matt Kahn, Secretary Legal Counsel: Ms. Cheryl Greene, Esq. Redevelopment Staff Mr. Bill Schalliol, Economic Development Specialist Ms. Cheryl Phipps, Recording Secretary Others Present: Ms. Pam Paluszewski, Legal Dept. Mr. Alan Feldbaum, Attorney Mr. Randy Rompola, Baker & Daniels Mr. Jim Frick, South Gateway Improvement Assn. 2. APPROVAL OF MINUTES There were no Minutes for approval. 3. APPROVAL OF CLAIMS There were no Claims for approval. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business 14 1 THERE WERE NO MINUTES FOR APPROVAL. THERE WERE NO CLAIMS FOR APPROVAL. THERE WERE NO COMMUNICATIONS. THERE WAS NO OLD BUSINESS Redevelopment Commission Meeting Special Meeting — July 27, 2004 6. NEW BUSINESS A. Public hearing on Resolution No. 2073 approving an amendment to the South Side Development Area Development Plan. Ms. Greene noted that Resolution No. 2073 amends the South Side Development Area Development Plan in order to create a separate allocation area surrounding the Anchor project site. The new allocation area will be named Allocation Area No. 2, and the base assessment date will remain the same. Mr. Schalliol asked that the following items be entered into the record: (1) a copy of Resolution No. 2073; (2) a copy of the Notice of Hearing; (3) affidavits from the South Bend Tribune and Tri- County News that the Notice of Hearing was published in those newspapers on July 16, 2004; (4) a memo from Bill Schalliol that affected property owners and neighborhood associations have been notified; and (5) there were no written remonstrances received as of 8:00 a.m. Ms. Jones opened the Public Hearing for whoever wished to speak. There was no one who wished to speak regarding Resolution No. 2073. B. Commission approval requested for Resolution No. 2073. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2073 amending the South Side Development Area Development Plan. L PUBLIC HEARING ON RESOLUTION NO. 2073 COMMISSION APPROVED RESOLUTION No. 2073. Redevelopment Commission Meeting Special Meeting — July 27, 2004 6. NEW BUSINESS (CONT.) C. Commission approval requested for Resolution No. 2074 authorizing the issuance of city of South Bend, Indiana, Redevelopment District adjustable rate demand Tax Increment revenue Bonds and other related matters. Mr. Rompola noted that Resolution No. 2074 is the final bond resolution to the preliminary bond resolution previously approved on July 16. Resolution No. 2074 authorizes the issuance of bonds in a maximum principal amount of $2.8 million. This sum is quite a bit higher than what we expect the final bond amount to be, but we want some flexibility in case the cost goes up before the bonds are sold. The term of the bonds is a maximum of 25 years, consistent with the Development Agreement made with the developer. The maximum interest rate is set at 7 %. The resolution references the Letter of Credit, reimbursement agreement and the obligation of the Commission to reimburse the developer to the extent the TIF revenues are short in the early years. If the developer has to make payments, the Commission will be obligated to reimburse the developer up to a period of 25 years. Mr. Rompola explained that the variable rate bond requires a Letter of Credit which will be issued by First Third Bank. The bank will pay the bondholders each time there is an interest payment due. The Commission will reimburse Fifth Third Bank for those interest payments. Mr. Rompola also noted that Resolution No. 2073 references the Commissions obligation to pay the principle and interest on the Economic Development Commission bonds by defining the flow of funds: first to make payments on the TIF bonds, second to make P & I payments on the EDC c, 3 Redevelopment Commission Meeting Special Meeting — July 27, 2004 6. NEW BUSINESS (CONT.) C. continued... bond, and then for use on other projects in the TIF area. Mr. Rompola noted that Resolution No. 2073 also approves a Form of Trust Indenture. The Indenture sets forth in greater detail the terms of the bonds, the obligations with respect to the Trustee and the Letter of Credit. The Indenture allows at some point in the future for the bonds to be converted to a fixed rate financing. The developer intends to do that when the project starts to generate some TIF for the area. Mr. Hunt asked what interest rate is anticipated. Mr. Rompola responded that they recently closed on a similar bond with an interest rate of 1.25 %. ce, Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2074 authorizing the issuance of city of South Bend, Indiana, Redevelopment District adjustable rate demand Tax Increment revenue Bonds and other related matters. D. Public Hearing on Resolution No. 2075 appropriating the proceeds (including investment earnings thereon) of the City of South Bend, Indiana, Redevelopment District adjustable rate demand Tax Increment Revenue Bonds to be applied to the cost of local public improvements in or serving Allocation Area No. 2 of the South Side Development Area. Mr. Rompola noted that Resolution No. 2075 appropriates the proceeds of the bonds to the Anchor project. L, COMMISSION APPROVED RESOLUTION NO. 2074 AUTHORIZING THE ISSUANCE OF CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT ADJUSTABLE RATE DEMAND TAX INCREMENT REVENUE BONDS AND OTHER RELATED MATTERS 14 Redevelopment Commission Meeting Special Meeting — July 27, 2004 6. NEW BUSINESS (CONT.) D. continued... Mr. Schalliol asked that the following items be entered into the record: (1) a copy of Resolution No. 2073; (2) a copy of the Notice of Hearing; and (3) affidavits from the South Bend Tribune and Tri- County News that the Notice of Hearing was published in those newspapers on July 16, 2004. Ms. Jones opened the Public Hearing for whoever wished to speak. Mr. Jim Frick indicated that the South Gateway Improvement Association is in favor of the appropriation. There was no one else who wished to speak regarding Resolution No. 2075. E. Commission approval requested for Resolution No. 2075. Upon a motion by Mr. Hunt, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 2075 appropriating the proceeds (including investment earnings thereon) of the City of South Bend, Indiana, Redevelopment District adjustable rate demand Tax Increment Revenue Bonds to be applied to the cost of local public improvements in or serving Allocation Area No. 2 of the South Side Development Area 7. Progress Reports There were no progress reports. 8. Next Commission Meeting The next meeting of the Redevelopment Commission is scheduled for Friday, August 6, 2004 at 10:00 a.m. 5 PUBLIC HEARING ON RESOLUTION NO. 2075 COMMISSION APPROVED RESOLUTION NO. 2075 APPROPRIATING THE PROCEEDS (INCLUDING INVESTMENT EARNINGS THEREON) OF THE CITY OF SOUTH BEND, INDIANA, REDEVELOPMENT DISTRICT ADJUSTABLE RATE DEMAND TAX INCREMENT REVENUE BONDS TO BE APPLIED TO THE COST OF LOCAL PUBLIC IMPROVEMENTS IN OR SERVING ALLOCATION AREA NO. 2 OF THE SOUTH SIDE DEVELOPMENT AREA PROGRESS REPORTS NEXT COMMISSION MEETING 14 Redevelopment Commission Meeting Special Meeting — July 27, 2004 9. Adjournment There being no further business to come before the Redevelopment Commission, Mr. Hunt made a motion that the meeting be adjourned. Mr. Faccenda seconded the motion and the meeting was adjourned at 8:15 a.m. Do Id E. Inks, Director 2 ADJOURNMENT Philip J. Faccenda, mice President