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HomeMy WebLinkAbout02-21-03 Redevelopment Commission MinutesG SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING February 21, 2003 10:00 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 Mr. Philip J. Faccenda, Secretary Mr. Matt Kahn Mr. Hardie Blake, Jr. Ms. Marcia Jones, Vice - President Ms. Cheryl Greene Redevelopment Staff. Ms. Pamela Morris, Recording Secretary Mr. Owen Rock, Economic Development Specialist Mr. Mike Beitzinger, Assistant Director, Econ Development Mr. Bill Schalliol, Economic Development Specialist Mr. Robert Mathia, Economic Development Specialist Mr. Robert Case, Economic Development Specialist Mr. Tim Williams, Economic Development Specialist Others Present: Ms. Pam Paluszewski, Legal Ms. Mary Kate Stickel Mr. Bruce Yerry, Executive Director Hope Housing Ms. Clyde Manning, Hope Rescue Mission Ms. Anne Mannix, Neighborhood Development Associates Mr. Randy Rompola, Baker & Daniels 2. APPROVAL OF MINUTES There were no minutes available for approval. THERE WERE No MINUTES AVAILABLE. 3. APPROVAL OF CLAIMS Redevelopment Commission Claims submitted February 21, 2003 for approval. 212 CDBG COMMUNITY DEVELOPMENT Boise $ 420.17 1 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 C 3. APPROVAL OF CLAIMS (CONT.) 414 SAMPLE -EWING Meridian Title Corp 600.00 Jonathan E. Baker 800.00 Thomas General Construction 200.00 AEP 50.00 Code Enforcement 118.50 City of South Bend 1,313.52 Grauvogel & Associates 787.50 420 SBCDA Champion Softwater, Inc. 209.80 Jerome E. Michaels, MAI 5,000.00 Meridian Title Corporation 172,039.81 424 FUND CB Richard Ellis 358.86 $ 181.898.16 Mr. Hunt requested an explanation of the Meridian Title Corporation claim in the amount of $172,039.81. Mr. Rock advised it was the closing of Franny's Restaurant which was completed on February 14, 2003. Upon a motion by Mr. Kahn, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted February 21, 2003, and ordered the checks to be released. 4. COMMUNICATIONS There were no Communications. L COMMISSION APPROVED THE CLAIMS SUBMITTED FEBRUARY 21, 2003, AND ORDERED THE CHECKS TO BE RELEASED. THERE WERE NO COMMUNICATIONS. G C+. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS A. Public Hearings There were no Public Hearings. B. Tax Abatements (1) Commission approval requested for Resolution No. 1959 approving an application for real property tax deduction for property located at 432 S. Lafayette Street in the South Bend Central Development Area. (Rescue, Inc. and Hope Housing L. P.) Mr. Beitzinger reported that Rescue, Inc. is the owner of the property at 432 S. Lafayette Street. The site is the former Ries Furniture store. In response to the growing number of homeless families in our community, Rescue, Inc. is responding with a complete renovation of the building as a new shelter for families, which will be called the Family Life Center. A portion of the building will be leased to Hope Housing L.P. which will own 34 units of transitional housing. The housing will be owned by the limited partnership because the partnership will receive funding through the Low Income Housing Tax Credit Program. Hope Housing will be responsible for real property taxes on the portion of the building that they will own, and they are seeking a ten year abatement on that portion. THERE WAS NO OLD BUSINESS. THERE WERE NO PUBLIC HEARINGS. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... It is estimated that this project will create one new permanent job within the first year, representing a new annual payroll of between $18,000 and $22,000. A review of the tax abatements previously granted, finds that the petitioner has not been granted any previous tax abatements. The building commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project and a review of the tax abatement designation maps finds that the property is located in an area presently designed as a Economic Development Target Area by the South Bend Economic Development Commission. A review of the South Bend Redevelopment designation areas finds that the property is located in the South Bend Central Development Area which is a Tax Incremental Allocation Area, therefore the petition for real property tax abatement must first be approved by the South Bend Redevelopment Commission. A review of the Tax Abatement Ordinance finds that the petitioner meets the qualifications for a ten year real property abatement under section 2 -77 Multi - Family Real Property Tax Abatement. Based on a total estimated project cost of $1,500,000 the cost of the tax abatement is as follows: IL South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... Mr. Bruce Yerry distributed a handout to the Commission which highlighted the project and included elevation drawings for the ILI building, exterior landscaping designs, site development notes, architectural notes and general notes. The basement area of 10,500 sq ft will provide space for education purposes. The first floor of the building will contain a cafe, child care area, kitchen, dining room and chapel. The second floor will be housing units for persons first entering the Family Life Center. The third floor will house entire families with male heads -of- households. Finally, the fourth floor will become an area for single women and women with children. Mr. Hunt asked if the Life Center is all family oriented, or for single women also. Mr. Yerry responded that the Family Life Center will be for both single women and families. The only men that will be housed in the building are men that are heads of households; either as a married couple, or ILsingle men with children. 5 Estimated taxes over 10 years Without abatement $322,312 With 10 -yr abatement $162,767 Estimated cost of 10 year abatement $159,544 Mr. Bruce Yerry distributed a handout to the Commission which highlighted the project and included elevation drawings for the ILI building, exterior landscaping designs, site development notes, architectural notes and general notes. The basement area of 10,500 sq ft will provide space for education purposes. The first floor of the building will contain a cafe, child care area, kitchen, dining room and chapel. The second floor will be housing units for persons first entering the Family Life Center. The third floor will house entire families with male heads -of- households. Finally, the fourth floor will become an area for single women and women with children. Mr. Hunt asked if the Life Center is all family oriented, or for single women also. Mr. Yerry responded that the Family Life Center will be for both single women and families. The only men that will be housed in the building are men that are heads of households; either as a married couple, or ILsingle men with children. 5 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... Mr. Hunt inquired as to the impact on the current facility. Mr. Yerry advised that the men's ministry will stay on Michigan Street. In addition, the program for feeding everyone three meals per day will also remain on Michigan Street. Mr. Blake asked approximately how much room there will be for families. Mr. Yerry indicated there will be room for eighteen families plus the single units. Mr. Hunt asked about the time frame involved. Mr. Yerry advised that the construction would be done in phases. The first phase being the education area and the second phase would be the remainder of the residential space. $1.25M has been pledged thus far to the project in addition to a $2M tax credit, making a total of $3.25M to begin the project. Mr. Hunt asked if the entire tax abatable portion would be in the first phase. Mr. Yerry responded that as soon as they receive that money construction would begin. IL 6 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS B. Tax Abatements (1) continued... Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED RESOLUTION No. 1959 by Mr. Kahn and unanimously carried, the APPROVING AN APPLICATION FOR REAL Commission approved Resolution No. 1959 PROPERTY TAX DEDUCTION FOR PROPERTY LOCATED AT 432 S. LAFAYETTE STREET IN THE approving an application for real property SOUTH BEND CENTRAL DEVELOPMENT AREA. tax deduction for property located at 432 S. (RESCUE, INC. AND HOPE HOUSING L. P.) Lafayette Street in the South Bend Central Development Area. (Rescue, Inc. and Hope Housing L. P.) C. Housing (1) Commission approval requested for Subordination Agreement between the City of South Bend on behalf of its Bureau of Housing and San Juana C. Caballero a/k/a San Juana C. Sims. (1733 N. Johnson Street) Mr. Rock reported that the Subordination Agreement is related to a mortgage executed by San Juana C. Caballero, a/k/a San Juana C. Sims through the Bureau of Housing. The address is 1733 N. Johnson Street, South Bend, Indiana. The Commission, on behalf of the Bureau of Housing, will be agreeing to subordinate its interest in the mortgage to U. S. Bank in the not -to- exceed amount of $3,750. The property is Lot Numbered 267 as shown on the recorded Plat of Marquette Park First Addition to the City of South Bend. Upon a motion by Mr. Kahn, seconded by COMMISSION APPROVED THE SUBORDINATION Mr. Blake and unanimously carried, the AGREEMENT BETWEEN THE CITY OF SOUTH Commission approved the Subordination BEND ON BEHALF OF ITS BUREAU OF HOUSING AND SAN JUANA C. CABALLERO A/K/A SAN 7 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS C. Housing (1) continued... Agreement between the City of South Bend on behalf of its Bureau of Housing and San Juana C. Caballero a/k/a San Juana C. Sims. (1733 N. Johnson Street) (2) Commission approval requested for Loan and Grant in accordance with the South Bend Home Improvement Program for property located at 841 South Brookfield Street. (Sherri Jester) Mr. Rock reported that the amount of the loan is $5,050 and the amount of the grant is $7,500. Upon a motion b Mr. Blake, seconded b P Y Y Mr. Kahn and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Program for property located at 841 South Brookfield Street. (Sherri Jester) (3) Commission approval requested for Loan and Grant in accordance with the South Bend Home Improvement Program for property located at 1110 N. College Street. (Nellie R. Morgan) Mr. Rock reported that the amount of the loan is $17,900 and the amount of the grant is $7,500. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Loan and Grant in accordance with the South Bend Home Improvement Program for property located at 1110 N. College Street. (Nellie R. Morgan) 8 JUANA C. SIMS. (1733 N. JOHNSON STREET) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 841 SOUTH BROOKFIELD STREET. (SHERRI JESTER) COMMISSION APPROVED THE LOAN AND GRANT IN ACCORDANCE WITH THE SOUTH BEND HOME IMPROVEMENT PROGRAM FOR PROPERTY LOCATED AT 1 110 N. COLLEGE STREET. (NELLIE R. MORGAN) South Bend Redevelopment Commission IL Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (1) Receipt and opening of bids in connection with the Crescent Avenue Properties Parcels 1, 2 and 3 in the South Bend Central Development Area. (North side of Crescent Avenue between Niles Avenue and Hill Street) Mr. Schalliol reported that the staff of the Redevelopment Commission advertised for the disposition of the Crescent Avenue Properties with Resolution No. 1935 and a bid date of Friday, February 21, 2003 at 10:00 a.m. At present, no bids have been received. Mr. Hunt advised that no Commission CRESCENT AVENUE PROPERTIES BIDS. action was necessary. (2) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (ALTA survey, 7 parcels located on the East Bank) Mr. Mathia reported that proposals were requested for the preparation of ALTA surveys on several properties located on the East Bank. These properties are commonly known as Stephenson Mill Apartments, Waters Edge and Seitz Park. The surveys are needed to accurately determine property boundaries and legal rights and interests in the properties in anticipation of carrying out various development activities along the East Bank. Three (3) proposals were received and are as follows: c, 9 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (2) continued... Danch, Hamer & Associates $3,600 Lang, Feeney & Associates $3,300 Wightman Petrie, Inc. $4,500 Staff recommends accepting the proposal from Lang, Feeney & Associates. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Lang, Feeney & Associates based on the scope of services and fee proposed. (3) Commission approval requested for Resolution No. 1956 related to acquisition of property in the South Bend Central Development Area by eminent domain. Mr. Schalliol reported that Resolution No. 1956 is a resolution related to the acquisition of property in the South Bend Central Development Area. Resolution No. 1956 sets the acquisition price for three (3) parcels of land located at the northwest corner of North Hill Street and Colfax Avenue. The three (3) properties are as follows: Tax Key No. 18- 5005 -0129 located at 211 N. Hill Street and owned by Vern V. and Mary Margaret Planck Family Trust. The average appraisal price is $25,250. The 10 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN LANG, FEENEY & ASSOCIATES BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (3) continued... remaining two (2) parcels, Tax Keys 18- 5005 -0128 and 18- 5005 -0130 are located at 517 and 529 E. Colfax respectively, are owned by Ernest L. Bryant. The average appraisal price for those two (2) parcels is $142,500. Staff is requesting approval of Resolution No. 1956 and authorization to send a purchase offer for the three (3) properties based upon the average of the appraisals. Upon a motion by Mr. Faccenda, seconded by Mr. Blake and unanimously carried, the Commission approved Resolution No. 1956 related to acquisition of property in the South Bend Central Development Area by eminent domain. (4) Commission authorization requested to use the Wayne Street garage in the South Bend Central Development Area on June 20, July 11 and August 8, 2003. (AIDS Ministries, Rooftop Rendezvous) Mr. Williams reported that staff has previously met with AIDS Ministries to discuss concerns regarding past events. These concerns have been reviewed and addressed with measures taken to correct such issues as locking down the garage after the event, additional security for lower levels and areas around the garage, clean-up, proof of insurance and indemnification. 11 COMMISSION APPROVED RESOLUTION NO. 1956 RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA BY EMINENT DOMAIN. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (4) continued... Staff recommends approval to hold three (3) Rooftop Rendezvous events on the following dates: Friday, June 20, 2003 Friday, July 11, 2003 Friday, August 8, 2003 Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission authorized the use of the Wayne Street garage in the South Bend Central Development Area on June 20, July 11 and August 8, 2003. (AIDS Ministries, Rooftop Rendezvous) (5) Commission authorization requested to use the Wayne Street garage in the South Bend Central Development Area on June 6, 2003 through June 8, 2003. (South Bend Park Department for World's Largest Garage Sale) Mr. Williams reported that the Parks & Recreation Department has requested the use of the Wayne Street garage for its 28' Annual World's Largest Garage Sale on Saturday, June 7, 2003. For the purposes of set -up, the Garage Sale and clean-up, the garage is needed from 5:00 p.m. Friday, June 6`' through Sunday morning, June 8'. Staff requests authorization of this request. 12 COMMISSION AUTHORIZED THE USE OF THE WAYNE STREET GARAGE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ON JUNE 20, JULY I I AND AUGUST 8, 2003. (AIDS MINISTRIES, ROOFTOP RENDEZVOUS) South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (5) continued... Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission authorized the use of the Wayne Street garage in the South Bend Central Development Area on June 6, 2003 through June 8, 2003. (South Bend Park Department for World's Largest Garage Sale) (6) Commission approval requested for the First Amendment to Lease between the South Bend Redevelopment Commission and LePeep of South Bend, Inc. dated October 20, 2000. (127 S. Michigan Street) Mr. Williams reported that the First Amendment to the LePeep Lease at 127 S. Michigan Street will expand the current 2,703 sq ft restaurant to 3, 203 sq ft. LePeep is current on their rent and this expansion will facilitate the development of the adjoining space at 129 S. Michigan Street. Staff recommends approval of the First Amendment to the original Lease dated October 20, 2000. Upon a motion by Mr. Faccenda, seconded by Mr. Kahn and unanimously carried, the Commission approved the First Amendment to Lease between the South Bend Redevelopment Commission and LePeep of South Bend, Inc. dated October 20, 2000. (127 S. Michigan Street) (W 13 COMMISSION AUTHORIZED THE USE OF THE WAYNE STREET GARAGE IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA ON JUNE 6, 2003 THROUGH JUNE 8, 2003. (SOUTH BEND PARK DEPARTMENT FOR WORLD'S LARGEST GARAGE SALE) COMMISSION APPROVED THE FIRST AMENDMENT TO LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND LEPEEP OF SOUTH BEND, INC. DATED OCTOBER 20, 2000. (127 S. MICHIGAN STREET) South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (continued...) (7) Commission approval requested for Lease between the South Bend Redevelopment Commission and Holaway Enterprises, Inc. d/b /a S. Benders, Inc. (129 S. Michigan Street) Mr. Williams reported the space for lease located at 129 S. Michigan Street is the former Copier's Plus space and has been reconfigured with 500 sq ft being added to the LePeep Lease previously approved by the Commission. This configuration reduces the space for S. Benders, Inc. to approximately 1,056 sq ft which is what the tenant requested. It will be a novelty and variety type shop which will be owned and operated by Laura Holaway, the current proprietor of Laura Lee's at 121 S. Michigan Street. Staff recommends approval of the lease. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission approved the Lease between the South Bend Redevelopment Commission and Holaway Enterprises, Inc. d/b /a S. Benders, Inc. (129 S. Michigan Street) (8) Commission approval requested for proposal for professional services in the South Bend Central Development Area. (Title work, 7 parcels located on the East Bank) 14 COMMISSION APPROVED THE LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT COMMISSION AND HOLAWAY ENTERPRISES, INC. D /B /A S. BENDERS, INC. (129 S. MICHIGAN STREET) South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) D. South Bend Central Development Area (8) continued... Mr. Mathia reported that proposals were requested for the preparation of title searches on seven (7) parcels located on the East Bank. These parcels make up the properties commonly known as Stephenson Mill Apartments, Waters Edge and Seitz Park. The title searches are needed to accurately determine property descriptions, boundaries, legal rights and interests in the properties in anticipation of carrying out various development activities along the East Bank. Two (2) title companies were contacted, Meridian Title Corporation and Metropolitan Title Corporation. Only Meridian Title Corporation submitted a proposal of $100 per parcel for a total cost of $700. In addition, Meridian stated the work could be completed within twelve (12) working days. Staff recommends accepting the proposal from Meridian Title Corporation. Upon a motion by Mr. Blake, seconded by Mr. Kahn and unanimously carried, the Commission approved the request for professional services in the South Bend Central Development Area and authorized staff to retain Meridian Title Corporation based on the scope of services and fee proposed. E. Sample -Ewing Development Area (1) Presentation of project proposals for Studebaker Corridor Parcel 7 located in the Sample -Ewing Development Area. (Bell Parts Supply, Inc. and Ziolkowski Construction, Inc.) 15 COMMISSION APPROVED THE REQUEST FOR PROFESSIONAL SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND AUTHORIZED STAFF TO RETAIN MERIDIAN TITLE CORPORATION BASED ON THE SCOPE OF SERVICES AND FEE PROPOSED. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) E. Sample -Ewing Development Area (1) continued... Mr. Rock requested that item 6.E.1. be COMMISSION TABLED ITEM 6.E.1. tabled. There were no objections and the Commission tabled item 6.E.1. F. Airport Economic Development Area (1) Commission approval requested for Resolution No. 1951 relating to the acquisition of real property in the Airport Economic Development Area. Mr. Case reported that Resolution No. 1951 requests approval to set the acquisition price on three (3) parcels of property located in IL the Airport Economic Development Area. The parcels are all part of the Olive Road Expansion Project. Two (2) appraisals were obtained for each parcel and the average offering price follows: ► Parcel A – Key No. 04- 1011- 0187.5 Owner, Beverly S. Grove $74,750 ► Parcel B – Key No. 04 -1011- 1087.1 Owner, Sharon Harolzinski $70,500 ► Parcel C – Key No. 04- 1020 - 0334.01 Owners, Sharlene Stidham and Shirley Kline $228,500 Mr. Hunt inquired as to why Parcel C was so much more money and asked if it was a much larger piece of property. 16 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (1) continued... Mr. Case responded that Parcel C was a nine acre parcel which also included a house. Upon a motion by Mr. Blake, seconded by Mr. Kahn and unanimously carried, the Commission approved Resolution No. 1951 relating to the acquisition of real property in the Airport Economic Development Area. (2) Filing of Resolution No. 1958 amending the Airport Economic Development Area Development Plan and setting a Public Hearing for March 7, 2003 at 10:00 a.m. Mr. Schalliol advised that staff was requesting to file Resolution No. 1958 which would amend the Airport Economic Development Area Development Plan and add one (1) property to the acquisition list. The property is Lot 2 of the Ameriplex Olive Road Minor Subdivision. The current property owner is Ancon Construction Company, Inc. and is Tax Key No. 25 -1011- 0187.09. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 1958 and set a public hearing on Resolution No. 1958 for 10:00 a.m., March 7, 2003 at a regular meeting of the Redevelopment Commission. (3) Commission approval requested for Resolution No. 1960 a preliminary bond resolution of the South Bend 17 COMMISSION APPROVED RESOLUTION NO. 1951 RELATING TO THE ACQUISITION OF REAL PROPERTY IN THE AIRPORT ECONOMIC DEVELOPMENT AREA. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1958 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1958 FOR 10:00 A.M., MARCH 7, 2003 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (3) continued... Redevelopment Commission authorizing the issuance of the South Bend Redevelopment District Tax Increment Revenue Bonds. Mr. Rompola of Baker & Daniels reported that Resolution No. 1960 authorizes the issuance of Tax Increment Revenue Bonds that would be payable solely from Tax Increment Revenues. There is no tax levy pledged or available for this bond issue. The bond issue is for a series of road projects. It was noted that there is a $13M maximum amount. Resolution No. 1960 also sets, at ILthe March 21, 2003 Redevelopment Commission Meeting, the appropriation of the bond proceeds. Indirectly, by financing various road projects out of the bond issue, it frees up available cash to defease outstanding 1993 Airport Taxable Bonds and outstanding 1997 Tax Exempt Bonds, which are payable from tax increment. It will also free up some of the reserve funds that those bond issues had that were held for this bond issue. Baker & Daniels advised it was cheaper for the City to do the road projects out of the bond issue, rather than doing the refandings out of the bond issue because of the requirements for escrows, among other things. Mr. Hunt asked about what type of interest rates were being discussed. 18 South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) F. Airport Economic Development Area (3) continued... Mr. Rompola responded that interest rates have been very good; however, there is difficulty in any prediction. The shorter term rates have been consistently in the 2's, and the fifteen to twenty year rates in the high 3 %, low 4 %. The Iraq situation may make the rates spike for a few days and it is assumed that the rates would come back down fairly quickly should the early phases of the war be successful. The timing is such that the projected schedule for selling the bonds would be late March. It a war occurs, delaying the bond sale may be advised solely because of being caught in the market where IL the rates were going up and down due to the Middle East situation. Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED RESOLUTION No. 1960, by Mr. Kahn and unanimously carried, the A PRELIMINARY BOND RESOLUTION AUTHORIZING Commission approved Resolution No. 1960, a preliminary bond resolution authorizing the issuance of the South Bend THE ISSUANCE OF THE SOUTH BEND REDEVELOPMENT DISTRICT TAX INCREMENT REVENUE BONDS. Redevelopment District Tax Increment Revenue Bonds. t G. South Bend Medical Services District There was no business in the South Bend Medical Services District. H. West Washington - Chapin Development Area There was no business in the West Washington - Chapin Development Area. 19 THERE WAS NO BUSINESS IN THE SOUTH BEND MEDICAL SERVICES DISTRICT. THERE WAS NO BUSINESS IN THE WEST WASHINGTON -CHAPIN DEVELOPMENT AREA. South Bend Redevelopment Commission Regular Meeting — February 21, 2003 I. South Side Development Area (1) Staff report on withdrawal of Resolution No. 1953 amending the South Side Development Area Development Plan. Mr. Schalliol requested Resolution No. 1953 be withdrawn from consideration. There were no objections by the Commission. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission withdrew Resolution No. 1953 amending the South Side Development Area Development Plan. (2) Filing of Resolution No. 1957 amending the South Side Development Area Development Plan and setting a Public Hearing for March 7, 2003 at 10:00 a.m. ILMr. Schalliol reported that Resolution No. 1957 would amend the South Side Development Area Development Plan by adding six (6) properties to the acquisition list. Staff requests filing of Resolution No. 1957 and setting a public hearing for March 7, 2003. Five (5) of the properties are located adjacent to the Fitterling Landfill property on Auten Street, near the southwest corner of Main Street and Ireland. The remaining property includes a large vacant tract of land located along Widener Lane, west of Miami Street. Upon a motion by Mr. Kahn, seconded by Mr. Blake and unanimously carried, the Commission accepted for filing Resolution No. 1957 and set a public hearing on Resolution No. 1957 for 10:00 a.m., March 7, 2003 at a regular meeting of the Redevelopment Commission. 20 COMMISSION WITHDREW RESOLUTION NO. 1953 AMENDING THE SOUTH SIDE DEVELOPMENT AREA DEVELOPMENT PLAN. COMMISSION ACCEPTED FOR FILING RESOLUTION NO. 1957 AND SET A PUBLIC HEARING ON RESOLUTION NO. 1957 FOR 10:00 A.M., MARCH 7, 2003 AT A REGULAR MEETING OF THE REDEVELOPMENT COMMISSION. IM A South Bend Redevelopment Commission Regular Meeting — February 21, 2003 6. NEW BUSINESS (CONT.) J. Other There was no Other business. 7. PROGRESS REPORTS Mr. Rock reported that things are moving along successfully with the South Side Development Area and Mr. Schalliol is doing a great job with the acquisition of properties. The project is moving forward. In addition, the expansion project along Olive Road is moving forward nicely and hopefully this year the area will become four lanes. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for March 7, 2003 at 10:00 a.m. 9. ADJOURNMENT THERE WAS NO OTHER BUSINESS. NEXT COMMISSION MEETING There being no further business to come before the ADJOURNMENT Redevelopment Commission, Mr. Kahn made a motion that the meeting be adjourned. Mr. Blake seconded the motion and the meeting was adjourned at 10:37 a.m. a; X Robert W. Hunt, President 21 14'a ,::- ��"/ - Donald E. Inks, Director