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HomeMy WebLinkAbout04-08-04 Redevelopment Commission MinutesN IL SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING April 8, 2004 8:30 a.m. Presiding: Robert W. Hunt, President 1. ROLL CALL Members Present: Member Absent: Legal Counsel: 227 West Jefferson Boulevard South Bend, Indiana Mr. Robert W. Hunt, President Ms. Marcia Jones, Vice - President Mr. Matt Kahn Mr. Hardie Blake, Jr. Mr. Philip J. Faccenda, Secretary Ms. Cheryl Greene, Esq. Redevelopment Staff: Mr. Donald Inks, Director Ms. Cheryl Phipps, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Bill Schalliol, Economic Development Specialist Others Present: Mr. Jim Frick, South Gateway Association Mr. Michael Hardy, Barnes & Thornburg Mr. Dick Nussbaum, Sopko Nussbaum & Inabnit Ms. Pam Paluszewski, Legal Department 2. NEW BUSINESS A. South Side Development Area (1) Commission approval requested for Development Agreement between the South Bend Redevelopment Commission and Anchor Acquisition, Ltd. (Erskine Commons Retail Project) Ms. Greene reported that an agreement has been reached based upon the terms of the Memorandum of Understanding (MOU) entered into with Anchor Acquisitions, Ltd. The agreement relates to development of an 14 South Bend Redevelopment Commission Special Meeting —April 8, 2004 2. NEW BUSINESS A. South Side Development Area (1) continued... approximately 430,000 sq. ft. retail project located at the southwest corner of Ireland Road and Michigan Street in the South Side Development Area. The site will consist of two (2) anchor tenants on parcels A & B having a combined 325,000 sq. ft. of development, out -lots around the site that will accommodate approximately 30,000 sq. ft. of additional development and a third parcel accommodating approximately 75,000 sq. ft. of development that will consist of two or more retail tenants. The project is funded through Tax Incremental Financing, and an Economic Development Commission Bond which will be purchased by the developer with a twenty (20) year amortization period. There is also a five (5) year recovery period allowed in the event that at the end of the twenty (20) year period there is a shortfall. The site will be developed consistent with the South Side Development Area Development Plan. Mr. Hunt asked what will happen to the fire station. Ms. Greene responded that the fire station will be relocated as part of the project. It is anticipated that relocation will be complete by July 2005. The area where the fire station is currently located will become part of the entrance into the development. The City will be doing infrastructure changes in the area including relocation or reconfiguration of Lafayette so as to coincide with the entrance to the site. PJ N A South Bend Redevelopment Commission Special Meeting —April 8, 2004 2. NEW BUSINESS A. South Side Development Area (1) continued... Mr. Inks reported that the total amount of financing is $1.097M on off -site improvements and $1.73M to $2.4M, depending on the TIF generated, will be used on -site. With capitalized interest the bond is estimated to be approximately $5M. It is expected that TIF generated from the project will cover the debt service on both the EDC and TIF revenue bonds over the twenty (20) year amortization period. All revenue generated is to be from the project site itself, rather than the whole allocation area. Only those revenues from the site specific allocation area can be used to repay IL the TIF and EDC bonds. Ms. Greene noted that language in the Development Agreement provides for the recognition of a possible financing gap in which the developer would be at risk. Should the gap be closed and excess TIF is generated from the project, the excess TIF will go to the City and be utilized at the City's discretion. The Agreement, in Section 4.7, provides for the developer to issue a Letter of Credit upon commencement of City work, so that funds expended in anticipation of the project are backed up until the issuance of the bond. Mr. Hunt asked if the entrance to the development would be off Ireland Road at Lafayette. L A South Bend Redevelopment Commission Special Meeting —April 8, 2004 2. NEW BUSINESS A. South Side Development Area (1) continued... Ms. Greene replied that it would. Ireland Road will be reconfigured in front of the site to five (5) lanes with traffic signals. Michigan Street will also be reconfigured, both northbound and southbound, to include two (2) left turn lanes. Traffic studies indicate that the combination of the mall project, in addition to the Erskine Commons Retail Project, will generate significantly more traffic than is currently there. Ms. Greene noted that staff is working with the developer to identify landscaping that will be consistent with the overall plan for the South Side Development Area and ensure a comprehensive theme along the corridor. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved a Development Agreement between the South Bend Redevelopment Commission and Anchor Acquisition, Ltd. (Erskine Commons Retail Proj ect) 3. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for April 16, 2004 at 10:00 a.m. 4 COMMISSION APPROVED A DEVELOPMENT AGREEMENT BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND ANCHOR ACQUISITION, LTD. (ERSKINE COMMONS RETAIL PROJECT) NEXT COMMISSION MEETING South Bend Redevelopment Commission Special Meeting —April 8, 2004 A 4. ADJOURNMENT There being no further business to come before the Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 8:45 a.m. Gv Robert W. Hunt, President C�J G ADJOURNMENT Donald E. Inks, Director