HomeMy WebLinkAbout02-06-08 Redevelopment Commission Minutes
SOUTH BEND REDEVELOPMENT COMMISSION
RESCHEDULED REGULAR MEETING
February 6, 2008
10:00 a.m. 227 West Jefferson Boulevard
Presiding: Marcia I. Jones, President South Bend, Indiana
1. ROLL CALL
Members Present: Ms. Marcia Jones, President
Mr. Karl King, Vice President
Mr. Greg Downes, Secretary
Mr. Hardie Blake, Jr.
Mr. Ken Peczkowski
Legal Counsel: Mr. Charles S. Leone, Esq.
Mr. Lawrence Meteiver, Esq.
Redevelopment Staff: Mr. Don Inks, Director
Mr. Jeff Gibney
Mrs. Cheryl Phipps, Recording Secretary
Mr. Bill Schalliol, Economic Development Specialist
Mr. Robert Mathia, Economic Development Specialist
Ms. Jennifer Laurent, Economic Development Specialist
Mr. Nicholas Witwer, Economic Development Specialist
Others Present: Mayor Stephen Luecke
Mr. Tom Price, Mayor’s Office
Mr. Dave Matthews
Mr. Richard Hill, Baker & Daniels
Mr. Greg Hakanen, Notre Dame
Ms. Nancy Sulok, South Bend Tribune
Ms. Rita Kopala
Mr. Bill Eagan
Ms. GlendaRae Hernandez
Ms. Jackie Rucker, Notre Dame
Mr. Dennis Andres Jr., Baker & Daniels
Mr. John Rappelli
Mr. Donald Sniegowski
Mr. David Kimble, Cressy & Everett
Ms. Ashley Ottesen, Kite
Mr. Chris Malloy, Kite
Four others present who did not sign in
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
2. APPROVAL OF MINUTES
A. Approval of Minutes of the Regular Meeting of
Friday, January 18, 2008.
CM
Upon a motion by Mr. King, seconded by Mr.
OMMISSION APPROVED THE INUTES OF THE
RMF,J18,
EGULAR EETING OF RIDAY ANUARY
Downes and unanimously carried, the Commission
2008
approved the Minutes of the Regular Meeting of
Friday, January 18, 2008.
3. APPROVAL OF CLAIMS
Redevelopment Commission Claims submitted February 6, 2008 for approval.
420 FUND TIF DISTRICT – SBCDA GENERAL
Ralph D. Lauver $ 2,850.00
CB Richard Ellis 1,062.68
Wightman Petrie 3,922.50
Indiana Michigan Power 251.09
Total $ 8,086.27
CC
Upon a motion by Mr. Downes, seconded by Mr. Blake
OMMISSION APPROVED THE LAIMS
F6,2008,
SUBMITTED EBRUARY AND ORDERED
and unanimously carried, the Commission approved the
THE CHECKS TO BE RELEASED
Claims submitted February 6, 2008, and ordered checks
to be released
4. COMMUNICATIONS
TC
There were no Communications.
HERE WERE NO OMMUNICATIONS
5. OLD BUSINESS
A. Other
(1) Commission approval requested for
Substitute Resolution No. 2430 setting
procedures for contracts for services.
Mr. Leone noted that Resolution No. 2430 as
the Commissioners originally saw it related
only to title services, intending that it be a
format for discussion and revision. The
2
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
5. OLD BUSINESS (CONT.)
A. Other
(1) continued…
substitute version deals not only with title
services, but appraisals, land surveys, and
Phase I Environmental Surveys. It
encompasses all of the types of pre-closing
services that staff routinely engages in and
sets certain maximum fees.
Mr. Peczkowski noted that counsel did not
make the change he suggested at the last
meeting in point two. “All contracts
originated by staff must be related to
property in which the Commission has
expressed an interest in acquiring.” He
preferred to see that stricken and have the
paragraph say only, “All contracts originated
by staff must be related to property which the
Commission owns, intends to sell, use,
exchange, lease or otherwise engage in
disposition.” He felt the phrase as it currently
reads in the resolution was too “open.” He
was afraid of putting so much money into a
project on the front end that we feel
compelled to go ahead with it. Mr. Leone
responded that that is a policy issue for the
Commission.
Mr. Downes and Mr. King disagreed with
Mr. Peczkowski’s point of view. They felt to
delete the portion would defeat the purpose
of what the resolution is intended to
accomplish, streamlining the process.
Mr. King asked Mr. Leone to confirm that
none of these actions being conferred to staff
in this resolution indicates a commitment on
the Commission’s part to acquire property
3
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
5. OLD BUSINESS (CONT.)
A. Other
(1) continued…
nor should a prospective seller take them as
an indication that the Commission will
purchase their property. Mr. Leone agreed.
Mr. Leone said that any buyer of property
will go through a due diligence process. At
some point the information that is obtained
through that process may indicate that that
property should not be acquired. In order to
get to that point, a buyer wants have to have
the information from these sources.
Mr. Peczkowski did not agree with the sense
of urgency on these actions, nor with the
assumption that the buyer must bear all of the
cost of these types of actions.
CS
Mr. King made a motion to adopt Substitute
OMMISSION APPROVED UBSTITUTE
RN.2430
ESOLUTION O SETTING PROCEDURES
Resolution No. 2430. Mr. Downes seconded
FOR CONTRACTS FOR SERVICES
the motion. The motion carried on a vote of
four to one with Mr. Peczkowski opposed.
6. NEW BUSINESS
A. Receipt of Bids
(1) Receipt of Bids for disposition of property.
(NW corner Hill & Colfax)
N
Mr. Inks noted that the deadline for bids was
O BIDS RECEIVED
February 1, 2008, the scheduled date for this
meeting. There were no bids received. The
property remains for sale. No bids may be
accepted for other than the offering price
until 30 days have passed. After that time, a
negotiated offer may be accepted.
4
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
A. Receipt of Bids
(1) continued…
Mr. Peczkowski asked what the offering
price was for the property. Ms. Laurent
responded $135,000.
B. South Bend Central Development Area
(1) Commission approval requested for
proposal for professional services in the
South Bend Central Development Area.
(Title work, 415 S. William and 405 W.
Wayne)
Mr. Schalliol noted that staff has solicited a
proposal for title work at 415 S. William and
405 W. Wayne Streets. Meridian Title has
proposed a fee of $200. Staff recommends
accepting the offer.
C
Upon a motion by Mr. Downes, seconded by
OMMISSION APPROVED THE REQUEST FOR
415S.
PROPOSAL FOR TITLE SERVICES AT
Mr. Blake and unanimously carried, the
W405W.W,
ILLIAM AND AYNE AND ACCEPTED
Commission approved the request for
MT
THE PROPOSAL FROM ERIDIAN ITLE FOR THE
proposal for title services at 415 S. William
SCOPE OF SERVICES AND FEE PROPOSED
and 405 W. Wayne, and accepted the
proposal from Meridian Title for the scope of
services and fee proposed.
(2) Commission authorization requested for
Downtown South Bend Inc. to use LaSalle
Hotel parking lot for St. Paddy’s Day
Downtown Tent Party Mar 13-15, 2008.
Mr. Inks noted that this is a routine request
The tent party has become an annual event in
the downtown and staff recommends
approval.
5
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(2) continued…
Mr. Peczkowski said that, as an owner of a
business in that block where this event has
taken place, and especially in reference to
last year’s event, he is very happy to vote in
favor of more public intoxication on the
street in front of his store, more vomit on his
sidewalks that he must clean up because
DTSB is not there to do the job, more broken
bottles in the parking lot behind his building
and in the LaSalle Grill’s lot thanks to street
gangs that come around and pick up the
empty bottles. Plus, the feasibility and the
good foresightedness of having a tent in
South Bend in the middle of March when the
weather is always balmy. Last year’s
weather was just wonderful. Mr. Peczkowski
said the postal delivery workers who came to
his store the week after the event were
regaling with stories of broken bottles they
had to make their way around and excrement
and things left on the sidewalk thanks to this
wonderful event. He thinks people who are
looking to get intoxicated in South Bend are
really well served by this event. He thinks
this event needs to be revisited and handled
by the professionalspeople who sell liquor
C
for a living. There are enough bars and pubs
downtown to handle this.
Mr. Leone noted that the version of the
Authorization for Entry Upon and the
Temporary Use of Public Property document
the Commission is asked to approve is
slightly different than the one distributed in
the Commission packet. The changes were
clerical. The substance of the document is
6
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
B. South Bend Central Development Area
(2) continued…
the same.
Mr. Downes asked staff to make sure that the
cleanup after the event will be better this
year. He asked that DTSB provide a written
plan for cleanup.
Mr. Peczkowski asked that DTSB
responsibility be extended to at least a block
radius of the event, though he didn’t expect
them to accomplish that.
Ms. Jones responded that DTSB has
responsibility for the cleanliness of the entire
downtown area. She also expected they
should clean the entire area after the event
expeditiously.
CA
Mr. King made a motion to approve the
OMMISSION APPROVED THE UTHORIZATION
EUTU
FOR NTRY PON AND THE EMPORARY SE OF
Authorization for Entry Upon and the
PPSB
UBLIC ROPERTY IN THE OUTH END
Temporary Use of Public Property within the
CDA
ENTRAL EVELOPMENT REA
South Bend Central Development Area. Mr.
Downes seconded the motion. The motion
passed on a vote of four to one with Mr.
Peczkowski opposed.
C. Airport Economic Development Area
(1) Commission approval requested for Grant
of Easement to Indiana Michigan Power
Company (Oliver Industrial Park)
Mr. Inks asked that item 6.C.(1) be tabled.
I6.C.(1)
Upon a motion by Mr. King, seconded by
TEM WAS TABLED
Mr. Downes and unanimously carried, the
Commission tabled Item 6.C.(1).
7
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
D. West Washington-Chapin Development Area
(1) Quarterly report from South Bend
Heritage Foundation on progress at
Engman Natatorium.
QSB
Mr. Schalliol gave the report Phase I of the
UARTERLY REPORT FROM OUTH END
HF
ERITAGE OUNDAION ON PROGRESS AT
Engman Natatorium project , the new
EN
NGMAN ATATORIUM
addition, has essentially been completed.
Final closeout items are expected to be
completed in the spring.
E. South Side Development Area
(1) Commission approval requested for
proposal for professional services in the
South Side Development Area. (4215, 4219
and 4325 S. Main St.).
Mr. Schalliol noted that staff requested a
proposal for title work at 4214, 4219 and
4325 S. Main St. These properties are in the
Main/Lafayette intersection area where the
Commission has been acquiring property for
the new intersection. Meridian Title has
submitted a proposal to complete the work
for a fee of $300. Staff recommends
approval.
C
Upon a motion by Mr. Peczkowski, seconded
OMMISSION AUTHORIZED THE REQUEST FOR
SSD
PROPOSALS IN THE OUTH IDE EVELOPMENT
by Mr. King and unanimously carried, the
A
REA AND ACCEPTED THE PROPOSAL FROM
Commission authorized the request for
MT
ERIDIAN ITLE FOR THE SCOPE OF SERVICES
proposals in the South Side Development
AND FEE PROPOSED
Area and accepted the proposal from
Meridian Title for the scope of services and
fee proposed.
8
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) Commission approval requested for
Development Agreement by and among
the South Bend Redevelopment
Commission, the South Bend
Redevelopment Authority, the City of
South Bend and Kite Realty Group, LP.
Mr. Inks reviewed the significant terms of
the Development Agreement.
Mr. Inks pointed out Section 1.3, bond call
costs. The agreement between Kite and the
University of Notre Dame is still being
documented. That means that Kite does not
have ownership of the land, or lease interest
in the land, and cannot convey that to the city
for the city to build the roads, the right of
way, that’s necessary nor to convey the
leased site for the construction of a parking
garage. So, when the city actually issues the
bonds, the bond proceeds will be set aside
and not spent. There will then be a call
provision in the bonds that for a period of
time (still being defined, but probably in the
neighborhood of $120-145 days) in which
Kite will finish the documentation of their
agreement with the university and convey the
necessary property to the city. If all that goes
well, the call provision goes away and the
project proceeds. If, for some reason, that
does not transpire within that time frame,
then the city has the option of paying off all
of the bonds that have been issued, and Kite
has agreed to pay for all the costs related to
paying off those bonds under that call
provision. Kite has until May 31 to include
all of their arrangements with the university
and avoid those circumstances.
9
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
Section 1.9 addresses the funding amount,
the $35,000,000 that has been consistently
talked about for this development site. This
agreement includes an additional $1.7M
which is reserved for the Triangle
development. The total amount of money
addressed in the Development Agreement is
$36,700,000. The amount of money
available on the Kite side of the project is
$35M. That will be derived from two
sources: the project proceeds from the bond
issuance and from $5M in cash resources
from Major Moves and sewer capital from
the city’s accounts.
It is important to understand that if the net
proceeds from the bond are less than the
anticipated $30M (because we have to fund a
debt service reserve, or because the interest
rates go up) the city is not obligated to fund
those shortfalls in the bond proceeds. The
city’s entire obligation is the $33M,
including the $5M cash). On the other hand,
if we realize more in bond proceeds, the
city’s requirement would only be $3M in
cash, capped at $35M total.
Mr. Peczkowski asked if there are any TIF
revenues in the payback of the bonds. Mr.
Inks responded that the next agenda item is a
pledge resolution pledging TIF revenues for
repayment of the bonds.
Mr. Peczkowski noted that the real cost of
the project is $79M, including interest on the
bonds. That is the total amount of money
10
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
that will not be available for other projects.
He believes the city should be up front about
the total cost, as a bank must be in making its
loans. He would like to see that language put
into the Development Agreement so it is
clear. Mr. Inks didn’t think it was
appropriate information for this document.
The city has made public the debt service to
be paid on the bonds. This document talks
about the actual purchase price. Other
documents address the cost of financing.
Mr. Inks noted that Section 1.10 talks about a
hotel agreement. We will be receiving a
Letter of Intent from the developer for the
hotel development prior to the sale of the
bonds.
Mr. King asked about the hotel agreement.
At this point there’s no definitive agreement
by the hotel developers with Kite or with us
to development the hotel? So we’re at risk to
the extent of whatever amount of TIF is
attributable to the projected assessed value of
the hotel…I think the hotel constitutes a
reasonably good sized chunk of the
anticipated assessed value of the project. Mr.
Inks responded that there is some risk. Our
understanding is that they will provide a full,
formal Letter of Intent. Mr. Hill noted that
no bonds would be issued until that Letter of
Intent is presented.
Section 1.2 talks about the pledged funds that
the Redevelopment Commission will have
available to make the lease payments.
11
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
Section 1.3 outlines the definition of private
investment. We wanted to be clear with
everyone, including the developer, that
private investment must be directly related to
construction. It includes hard construction
costs, and may include some soft costs such
as architectural and engineering, but these
private investment costs are really expected
to be investments that create assessed value
on the site.
Mr. Inks noted that in Section 2.3, the Term
of the Agreement, the agreement is
terminated upon the earlier of the private
investment number reaching $169,300,000 or
the date on which the assessed value is
determined to be $157,000,000.
Sections 4.3, 4.4 and 4.5 lay out the
description of the project: square footage of
the office space, the retail space, the
apartments, the hotel development, the other
residential aspects. Section 4.5(d) gives a
market driven residential component: 60 of
the flats, 47 of the city homes and 20
courtyard townhomes will essentially be
constructed as there is demand for those
units.
Mr. Peczkowski noted, referring to the site
plan, that no single structure covers as much
square footage as the garage that the city is
responsible for building. Why is it that
exclusively on taxpayer nickels? He said he
understands the theory of municipal parking
garages, but there are a lot of challenges to
12
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
the theory that it is the right of every person
who owns a car to have a parking place and
that that parking place needs to be provided
by a municipality. Why isn’t the hotel
contributing to the cost of the parking
garage? Won’t they benefit from it? Why
aren’t some of the apartment buildings going
to contribute to the cost of parking? Mr. Inks
responded that in some communities the
market can pay for structured parking.
Chicago is a good example for that. But
South Bend will not pay the rates Chicago
charges for parking. From an economic
standpoint, that garage would not be self
sufficient. The only way those structures
will exist is if they are publicly funded. If
you want to see dense development, which
the City of South Bend does want,
particularly in the inner city, it needs to be
supported by structured parking.
Mr. Peczkowski also pointed out how costly
maintenance is on garages. Mr. Inks
indicated that the city has taken into account
the cost of garage maintenance in the way
this deal is structured with Kite. The city
will be looking to dispose of the property
under a lease, the terms of which will call for
the leasing entity to provide all operating and
maintenance costs, including capital costs
over the term of the lease (25 years). The
city will not pay any costs related to
operation of the garage. At the end of 25
years, ownership of the garage will be turned
over to the leasing entity.
13
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
Mr. Inks noted that Section 4.8 addresses the
use of local labor. The city will be
periodically informed of the number of local
contractors and laborers involved in the
project. Also, the city has done projections
as to how many jobs and other benefits will
be created by the project, so there are
reporting requirements for the first five years
after the project to verify that those benefits
occur.
Mr. Inks also noted that there is a
development delay section in the agreement
that provides for penalties up to $1M should
various aspects of the project fall behind
schedule.
The Commission’s obligations under this
agreement include completion of the
financing for public infrastructure
improvements and acquisition of the
remaining right-of-way for the Napoleon St.
extension.
In Section 6.1 the agreement anticipates a
construction management agreement with
Kite Realty Construction. The reason for
that stipulation is that this is a large, complex
development on a small site. To properly
coordinate the various construction aspects, it
makes a lot of sense for both parties to have
Kite as construction manager.
Sections 6.2 and 6.3 talk about parking
garage leases. The first lease is the lease
from the Redevelopment Authority to the
14
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
Redevelopment Commission. The
Commission has already approved that. The
second is the lease anticipated to go from the
Redevelopment Commission to the developer
and it covers the terms discussed this
morning.
Mr. Peczkowski asked what would happen if
the developer decided after 25 years that it
didn’t want the garage because it was in need
of too many repairs. Mr. Inks responded that
an earlier form of the Development
Agreement contained an option for the
developer to own the garage. That option has
been removed and the developer must take
ownership of it after 25 years.
In Section 6.4, Kite agrees to dedications of
grants to provide the necessary rights of way
for construction of the streets.
Section 6.5 relates to a street maintenance
agreement. There are some streets where we
will be using public funds, such as to put in
Burns St.; but because of the way the hotel
juts out into Burns, the city doesn’t want to
be responsible for maintaining anything
related to that with public funds.
Responsibility for maintenance of that street
and any other similar improvement are being
assigned to the developer.
Sections 8.1(b) and (c) are sequential in their
timing. If the developer is late on a piece of
the project, there may be a development
delay fee attached to that. After three years
15
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
of delay, the city has other remedies it can
seek beyond the delay fees.
Mayor Luecke thanked the Commission for
its strong attention to this project. It is a
significant project for South Bend and we are
eager to break ground, as is the developer.
There has been a lot of intense work to come
up with a Development Agreement that
reflects the deal we’ve all been anticipating.
It is impossible to write an air-tight, no-risk
agreement. There will always be some risk
on each side. We believe the Development
Agreement properly reflects the investment
the city has made or will make. He asked for
the Commission’s favorable action.
Mr. King asked what stands between this
document and a finished development
agreement. Mr. Inks responded that there is
very little. There are some dates that need to
be filled in based on the agreed-to schedule.
There may be some additional language on
the call provisions. The exhibits to the
document also need to be wrapped up.
Mr. Hill stated that any substantive changes
would only favor the city.
CD
Upon a motion by Mr. King, seconded by
OMMISSION APPROVED THE EVELOPMENT
ASB
GREEMENT BY AND AMONG THE OUTH END
Mr. Downes and unanimously carried, the
RC,S
EDEVELOPMENT OMMISSION THE OUTH
Commission approved the Development
BRA,C
END EDEVELOPMENT UTHORITY THE ITY
Agreement by and among the South Bend
SBKRG,
OF OUTH END AND ITE EALTY ROUP
Redevelopment Commission, the South Bend
LP.
AS PRESENTED AND AUTHORIZED EXECUTION
DA,
Redevelopment Authority, the City of South
OF THE FINALIZED EVELOPMENT GREEMENT
SUBJECT TO FINAL APPROVAL BY COUNSEL
Bend and Kite Realty Group, LP.as presented
16
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(1) continued…
and authorized execution of the finalized
Development Agreement, subject to final
approval by counsel.
(2) Commission approval requested for
Resolution No. 2434 establishing certain
funds and accounts in connection with the
lease dated as of October 15, 2007 between
the South Bend Redevelopment
Commission and the South Bend
Redevelopment Authority for the Eddy
Street Commons Project.
Mr. Inks noted that this resolution is
commonly referred to as the “pledge
resolution.”
Mr. Hill noted that the Whereas clauses refer
to all the previous actions the Commission
has taken related to this project. The
operative sections are on page three.
Section 1 creates and establishes the Eddy
Street Commons principal and interest
account in the Redevelopment District Bond
Fund which is the account that would pay
principal and interest on the bonds. The
bonds would be issued under the authority of
the Redevelopment Authority.
Section 2 refers to a tax levy. When the
Department of Local Government Finance
approved the financing, they determined that
this was not a controlled project, meaning
this is not a project that anticipates the use of
tax levy proceeds. The project is structured
so that the tax increment produced by the
17
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(2) continued…
improvements that Kite is going to construct
would be adequate to make principal and
interest payments on the bonds. The tax levy
backup is included for purposes of enhancing
the marketability of the bonds. It is being
approved by the Commission in this
resolution solely in that context. This
resolution would authorize the tax levy if
there is a shortfall in funds. Kite and the city
have worked exhaustively to make sure that
the assessments would come on time to make
the bond payments.
CRN.2434
Upon a motion by Mr. King, seconded by
OMMISSION APPROVED ESOLUTION O
ESTABLISHING CERTAIN FUNDS AND ACCOUNTS
Mr. Downes and unanimously carried, the
IN CONNECTION WITH THE LEASE DATED AS OF
Commission approved Resolution No. 2434
O15,2007SB
CTOBER BETWEEN THE OUTH END
establishing certain funds and accounts in
RCS
EDEVELOPMENT OMMISSION AND THE OUTH
connection with the lease dated as of October
BRA
END EDEVELOPMENT UTHORITY FOR THE
ESCP
15, 2007 between the South Bend
DDY TREET OMMONS ROJECT
Redevelopment Commission and the South
Bend Redevelopment Authority for the Eddy
Street Commons Project.
(3) Commission approval requested for
Resolution No. 2435 regarding
reimbursement of certain City of South
Bend funds advanced for the Eddy Street
Commons Project.
Mr. Inks noted that the city is committing
$5M to this project, in addition to $1.7M for
the Triangle development. As we presented
that financing structure to the Common
Council, the Council requested that it be
made clear that that money was a loan and
that they would be repaid from project
18
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
6. NEW BUSINESS (CONT.)
F. Northeast Neighborhood Development Area
(3) continued…
areaTIF revenues. Resolution No. 2435
recognizes that we are receiving other city
funds for the completion of Eddy Street
Commons. It includes an amortization
schedule for the $6,727,397 that is expected
to go into the project. It includes capitalized
interest and an assumed interest rate of 5%
and schedules payments through the fifteen
years after the TIF cash flows start and
recognizes that TIF revenue will be used to
make those payments.
CRN.2435
Upon a motion by Mr. Downes, seconded by
OMMISSION APPROVED ESOLUTION O
C
REGARDING REIMBURSEMENT OF CERTAIN ITY
Mr. King and unanimously carried, the
SB
OF OUTH END FUNDS ADVANCED FOR THE
Commission approved Resolution No. 2435
ESCP
DDY TREET OMMONS ROJECT
regarding reimbursement of certain City of
South Bend funds advanced for the Eddy
Street Commons Project.
Mr. Blake suggested that staff make public
the schedule of economic impact this project
is expected to have on the community. He
felt that it has not been adequately publicized
how big of an impact the project will have.
This is a really great project with a really
significant impact.
G. Douglas Road Economic Development Area
There was no business in the Douglas Road
Economic Development Area.
7. PROGRESS REPORTS
PR
Mr. Inks noted that the Commissioners requested an
ROGRESS EPORTS
update on the Studebaker Auto Parts building. A memo
19
South Bend Redevelopment Commission
Rescheduled Regular Meeting –February 6, 2008
7. PROGRESS REPORTS (CONT.)
from Ann Kolata was passed out. She was not able to
attend the meeting today, so will ask her to speak about
it at the February 15 meeting.
Mr. King said he appreciated the report from Ann and
that the situation has turned out the way it has, but this is
not what Mr. King was asking for. When the
Commission had extensive discussion about incurring
the expense that Ann refers to in her memo, at the time
there was no choice. But he remembers the
Commission being unanimous in saying they want from
staff a long term plan for the building, including a
solution that would protect the Commission from the
risk of repeatedly having to step in to provide financial
support because the operator of the building is not
financially capable of doing it.
8. NEXT COMMISSION MEETING
NCM
The next meeting of the Redevelopment Commission is
EXT OMMISSION EETING
scheduled for Friday, February 15, 2008 at 10:00 a.m.
9. ADJOURNMENT
A
There being no further business to come before the
DJOURNMENT
Redevelopment Commission, Mr. King made a motion
that the meeting be adjourned. Mr. Downes seconded
the motion and the meeting was adjourned at 11:00 a.m.
20