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HomeMy WebLinkAboutRM 08-23-85August 23, 10:00 a.m. Presiding 1. ROLL Members Legal SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING 985 1200 County -City Building 227 W. Jefferson Boulevard ficer: Mr. F. Jay Nimtz South Bend, Indiana 46601 President Present: Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice - President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho, Assistant Secretary Mr. Sandy Combs, Member Ms. Eugenia Schwartz Mr. Richard Hill Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Executive Deputy Director Ms. Denise Sullivan, Office Manager Ms. Gretchen Matthews, Econ. Dev. Specialist Bureau of Housing Staff: Ms. Mary Richmond, Project Director News Media: Mr. Jim Wensits, South Bend Tribune Mr. Dick Maginot, WSBT -TV Mr. Beth Martin, WZZP Radio Other: Mr. Richard Treptow, Springsted, Inc. 2. APPROVAL OF MINUTES Upon a motion made by Mr. Piasecki, seconded MINUTES OF THE REGULAR by Ms. )uburn and unanimously carried, the MEETING OF FRIDAY, AUGUST 9, minutes of the Regular Meeting of Friday, 1985 WERE APPROVED August , 1985 were approved. 3. APPROVAL(, OF CLAIMS Upon a motion made by Mr. Combs, seconded by Mr. Don ho and unani-.mously carried, the Con-mission formally app3 °oved the claims submitted August 15, 1985, and ordered checks dated August 21, 1985 to be released. P.E.A. Busines Communications Center $ 1,567.50 Chamber of Commerce 295.00 lst So ce Auto Lease 231.71 CLAIMS SUBMITTED AUGUST 15, 1985 WERE FORMALLY APPROVED AND CHECKS DATED AUGUST 21, 1985 WERE ORDERED TO BE RELEASED South Bend Regular Mee 3. APPROVA 4 tedevelopment Commission -ing - August 23, 1985 .i OF CLAIMS (Cont.) Petroleum. Traders Corp. 34.22 Schilli gs Sales Co. 8.70 Nicholas C. Jannottaa & Assoc. 2,347.02 National Governor's Assoc. 27.40 Mathias Hoffmann Publishing 3.95 Star T porary Services, Inc. 327.05 The Exe utive Program 69.22 Total $4,911.77 Grand Total $4,911.77 Mr. Hun read the following letter dated. COMMUNICATIONS August t3, 1985 for the record: Mr. F. ay Nimtz President Redevelopment Commission South Bend, Indiana Dear Ja *: Co gratulations on your 11th Anniversary as a menber and President of the Redevelopment Con iss on. You have provided outstanding leadership and direction to the work of the Commi.ss on through some very difficult, but also exciting, times. I comTend you for the significant contributions you have made to the City of South Bend. I lock forward to working with you and the oth r Commission members for the continued revitalization of our City. Thanks again for your eleven years of dedicated public service. sincere y, Roger O Parent 5. OLD BUSINESS There w s no old business. THERE WAS NO OLD BUSINESS -2- South Bend Regular Mei 6. NEW BUS elopment Commission - August 23, 1985 a. C ssion a royal r ested for Resolution No. 747 authorizing the issuance of tax revenue bonds for the ition in the South Area. of Mr.�Hunt noted that 6a and 6b are related it and will be presented together. Mr. Hunt stated that the proposed Tax Incremental Financing revenue bond is the first in the State of Indiana which is a historic occasion in terns of development financing. In the late 1970's the Redevelopment Coranission took the position that federal funds would be declining and there has already been evidence of that. The Co fission took the direction that they wcrld have to look for other financing mechanisms. The last bond issue by the Redevelopment Comnission was in 1972. Since then we have relied on the federal government_ in terms of UDA s, Section 108 loan guarantee funds, Co unity Development Block Grant Funds, and old bona money. In terms of moving into the next stage of revitalization of the downtown and recogniz ±ng the limitation of the present funding sources, the Commission pushed for the estiblishment of new State legislation to form a Tax Inurement Financing (TIF) law for the State of Indiana. The next step the Comnission took was a test case in court with TRAiSPO to test the constitutionality of TIF. In 1980 the Commission established the first allocation area in the City of South Bend, and sine then several other allocation areas have bee established throughout the State. The first step to selling a TIF bond is the public recognition of all the developmersts that have happened in the downtown area bec use of actions the Con - mission has taken. We would not be able to proceed with the TIF bon' if development had not occurred in do town South Bend. Three years ago the -3- South Bend .'Redevelopment Com-nission Regular Meeting - August 23, 1985 6. NEW BUSINESS (Cont.) a. uonv-inuea... do town did not have the Gateway Center, Business & Technology Center, the Palais Royale, the 100 N. Michigan storefronts, She fern Advertising, Gilberts, Teachers Credit Union, expanded Osco's, One Michigaa Square, Crowe - Chizek expansion, the completion of Block 6 with Dr. Harrington's project on the last available parcel of land, St. Joseph Tower, 227 S. Main rennovation, and the South Bend Tribune expansion. These are just some of the activities that have occurred in the do town area. A good physical environment has been set for private sector investment. Due to this development, the TIF bond will be based on the increase in assessed valuation in the allocation area. This will be a pure rev nue bond for which taxes cannot be levied. The development already occurring will be paying for future development in the downtown. What the Commission is proposing is a $4.2 mil ion bond issue. The general uses for the funds would include a legal obligation for a skyaalk connection of the Century Center and the Marriott Hotel. This would be a treiiendous benefit to the tourism and convention traffic in downtown South Bend. Last year the tourism and convention traffic bro ght in $50 million worth of revenue to thi conanunity. Other proposed uses include the construction of a parking facility in conaection with the Teachers Credit Union project, the acquisition of downtown property, including property for the proposed baseball stadium, a public facade improvement program in line with the strategy of the Downtown Tec ical Advisory Committee, and, lastly, pub is improvements in the downtown. Mr. Hunt thanked the Redevelopment staff for their work with the TIF process, especially Ann Kolata, who headed the staff in the merger of the Redevelopment areas, and Loren Rooney, who prepared the necessary County tax data. Mr. Hunt also thanked Richard Hill, Eugenia Sch artz and Mike Richardson for the excellent legal work they performed throughout the TIF process. Also thanked were the County Auditor and County Assessor who cooperated with the -4- South Bend Pedevelopment Commission Regular Mee ing August 23, 1985 6. NEW BUSINESS (Cont.) a. Conjtinued .. . staff in this process and who helped pull the necessary information together. Mr. Hunt also thanked State Senator Douglas Hunt who assisted in the State legislation necessary for the TIF process. Mr. Hunt lastly thanked the Redevelopment Commission for having the for sight to move ahead during a difficult period of time and backing the staff on the project. Mr. Hunt introduced Mr. Richard Treptow, Vice Pre ident of Springsted, Inc., noted the fine w,or ing relationship that the staff has maintained with Mr. Treptow, and thanked Mr. Tre tow along with Springsted, Inc., in taking the lead in this project. Mr. Treptow proceeded to describe Tax Increment Financing. One of the problems with TIF is that it is a brand new financing tool in 'Indiana. This will be the State of Ind ara's first TIF bond. Mr. Treptow sumnarized the key concepts of TIF that came out of the report prepared by Springsted, Inc. Mr. Treptow explained that this is a pure rev ue bond. There are two basic kinds of bonds - general obligation bonds which are tax backed and pure revenue bonds. This TIF bond is mot a general obligation bond, but most TIF bonds sold are general obligation bonds where the principal and interest bond payments are paid by tax increments and are general obligation backed bonds, so if revenues are not sufficient then the City may levy a tax to support any shortfall. This particular issue is a pure revenue bond which is where the principal and interest payments are paid only by designated revenues. It is illegal and not perindtted to pledge any type of tax levy support. These issues are relatively dif icult to sell because the bond holders want every assurance that their principal and interest payments will be made in a timely manner. What they normally look for in a municipal bond is some kind of taxing power. In this case, we have ample projected revenues in cess of estimated principal and interest pa ents to guarantee a successful sale. -5- South Bend Regular Me elopment Con-mission - August 23, 1985 6. NEW BUSINESS (Cont.) a. Contiinuea... Mr. Treptow explained how the increment ccmes about and how it is calculated. He used a graph to help in his explanation. To cause an increase in valuation within a certain tax increment district, a city will do some things to -ause developers to spend money to allow dev lopment to occur in a designated area. Thi3 development would not have occurred w-itiout some city assistance. To the extent tha assessed valuation begins to increase due to that activity, the increased valuation is t rarily captured, and normal taxes from that increase are diverted to pay the public costs involved. When those costs are paid, tha valuation is pulled back into the entire co unity. The City of South Bend assessed valuation within the tax increment district is about $12.8 million. This is called a frozen base. When the Redevelopment Commission started its activities, they created a TIF district and froze valuation at approximately $1218 million. This is the valuation that was in place that the County, the City, TRANSPO and the schools were, and still will be, sharing from the taxing of that property. If you multiply the assessed valuation times the tax rate you will get the tax revenue. The schools, TRANSPO, the City and the County get the taxes from this valuation. There is an increase from the activities which the Redevelopment Commission has already oonrienced that has generated approximately $2. 3 million of additional assessed valuation. This portion is eligible to finance activities, for example to make payments on bonds or pay for other development activities. This additional amount of assessed valuation has been added within the last few years. A port-ion of this assessed valuation has been abated. Over time, after the abatement is reduced over a period of ten years, this property will also be available for paying principal and interest on bonds. When the principal and interest on the bonds is totally paid then this distinction is lost and the entire development within the TIF district goes to the schools, TRANSPO, the City and South Bend Regular Me 6. NEW BU a. Co col and all is val out Ci and to The Aft, wil mil val wil are elopment Commission - August 23, 1985 (Cont.) ty in a normal manner. There is no rate tax levy for the bond issue. A ion of the taxes which are currently ected are diverted to pay for principal interest on the bonds. The theory behind this is, if it weren't for the money being t in this redevelopment area, you wouldn't the increases in assessed valuation. For s collected in 1985 the estimated revenue 305,000 from the $2.3 million increase in ation. Each year, while the bonds are tanding, this same base valuation, and the s from the valuation from the TIF district h were in existarce prior to the velopment Commission's activities, inues to flow to the schools, TRANSPO, the and the County. What happens is this as the abatements are reduced, falls out at the end of ten years all of this esents dollars which are available for ng principal and interest. Each year you more and more dollars from existing lopment which was created to be available ay principal and interest on the bonds. bonds can then be paid fairly quickly. r these bonds are paid off, all of this lopment falls to the tax base and is .ributed in a normal ratio. This is for lopment which has been created to date. _ngsted is very excited about selling the is and being able to tell the bond :baser of the economic vitality of the i. In 1985, on top of existing �lopment, $10 -13 million in development _ be taking place and an additional $10 _ion in 1986. Increases in assessed nation due to these projects have not been i in calculating the amount of increment _lable to pay for the bonds. Some of these jects will receive tax abatement and some not. The graph shows how, as abatements given as an incentive for development, 3e abatements fall off and generate Ltional income which can be used to pay off 3e bonds, which in turn causes more �lopment to occur. -7- South Bend Regular Me elopment Commission - August 23, 1985 6. NEW BUSINESS (Cont.) a. ContCinued... Calculations of all of this show that the total increment that can be expected from act vities which have been concluded and the development which will be assessed as of March 1, 1985 will be sufficient to cover the pri cipal and interest payments on a $4.2 million bond issue without having to resort to any kind of a supplemental tax. It was the Co ssion's desire to go with the type of a bond issue that could be supported, rather tham to levy a tax to support it. The revEmues are projected to be approximately two tirms the annual payments on the bonds. So there is a cushion to give the bond purchasers that much more confidence that this is a sec e bond issue. Mr- Wensits asked over what period of time the bon is will be repaid. Mr. Treptow stated that it a seventeen year issue. Mr. Wensits asked what happens if the $12.8 mil ion base is eroded through businesses closing or moving. Mr. Treptow stated that by statutory definition it remains at that level. If some buildings are demolished, it comes out of the revenue. We have built in to all of our calculations a healthy allowance for a decrease in taxable assessed valuation because of demolition activities and acquisition of property by the City. If the City acquires land, that land converts from tax paying property to non -tax paying property. That will. be turned around again into tax paying property when it is sold. Springsted has not ass that. They have assumed the worst and have already decreased the revenue for planned acquisitions and demolition projects. What. happens is the tax rates are determined for the whole City based on this kind of valuation being available, and then it applies to EL11 property including valuation created by activities of the Redevelopment Commission. So there is no special levy. This property pay the same amount of taxes that it would if there weren't any tax increment district. That valuation is captured and, therefore, the ME South Bend Regular Me, elopment Commission - August 23, 1985 6. NEW BUSINESS (Cont.) a. UonZ nuea .. . inc emental taxes are captured to pay principal and interest. It is only the area wi in the TIF district that we are concerned abo t. For instance, if a major manufacturer outside of the TIF district would leave, that has no effect on the revenue forecast of the rev nues actually collected. Mr. Hill explained that the Resolution the Redevelopment Commission is considering today has a process that would be concluded so that the closing on the sale of bonds would be before December 1, 1985. The bonds would be sold and delivered during the month of Nov r. Certainly if there was any delay the staff would do anything possible to make sure that the issue would be closed and delivered by the end of 1985. Mr. Treptow stated that Springsted, Inc., are fin cial advisors out of St. Paul, Minnesota. The State of Minnesota is one of the early leaders in tax increment financing and that is how Springsted orginally got into TIF. Since tha time, Springsted has done TIF bond issues in everal states and in a couple of occasions did the state's first TIF bond issue. In comparing South Bend's issue to other issues, it is a difficult issue as a first of its kind wi in the state always is. Springsted is ve high on South Bend's issue in that there is a substantial amount of development with which to work which generates revenue. Mr. Wensits asked if the TIF bond proceeds could be used to build the proposed Coveleski Baseball Stadium. Mr. Hill stated the Redevelopment Commission is limited to the statutory criteria of redevelopment activities for use of the bond proceeds. So if they would decide, for example, for acquisition or rel ation to take place in another portion of the area, they would have the flexibility to do that. If they would decide that the public imp ovements would be modified, that as long as 't is for the statutory redevelopment p ses, that is a permissible use of bond nr eeds. Mr. Hill stated that new South Bend Regular Mei elopment Commission - August 23, 1985 6. NEW BUSINESS (Cont.) a. uonainuea... construction is not considered a redevelopment activity. Redevelopment funds cannot be used to build the baseball stadium. Mr. Hill explained that as part of the development agreement that was executed in approximately 1979, and part of the inducements for the investments on the part of lst Source Bank, Rahn Properties and the owners of the Marriott Hotel, the City ccumLitted to construct the pedestrian walkway from Century Center to the Marriott. Around the State of Indiana there was some conflict as to whether a pedestrian walkway was a redevelopment activity. The third or fourth amendment of Senator Douglas Hunt to the TIF legislation was to redefine and add the construction of pedestrian walkways as an acc ptable redevelopment activity. Mr. Hunt explained the preliminary uses of the TIF bond proceeds. The parking facility related to the Teachers Credit Union project is estimated at about $1,000,000. The acquisition/relocation costs for property within the South Bend Central Development Area are estimated at about $750,000. The facade program is estimated at $540,000. The ped strian walkway is estimated at approximately $1,000,000. Finally, the general public improvements are estimated at approximately $215,000, which would ess tially be curb and sidewalks, lan scapinq, street trees, benches, etc. Mr. Hunt stated that when looking at the accpiisition and relocation planned in comiection with the proposed baseball stadium, regardless of the future of the stadium, acqViisition in that downtown area is a priority for the overall downtown plan. The area is highly undeveloped and has underutilized land, whether privately or publicly owned. If the baseball stadium is not completed, that area has a future as ano er suburban office complex similar to the Bl k 6 development. -10- South Bend Regular Me elopment Commission - August 23, 1985 6. NEW BUS$NESS (Cont.) a. uontinuea... Mr. Treptow explained that to get to the total $4. 2 million bond issue, besides the actual project costs, there are a few other costs. The largest is a provision for $535,000 which is a debt service reserve for this issue. This is an amount of money included in the bond issue for the purpose of protecting both the City and the bond holders in the event there is any unforeseen short fall in revenue. This is a common feature of pure revenue bonds. This amount is equal to the estimated average annual payments on the bonds and is set aside out of the bond proceeds into a special separate account which is invested at maximum permitted interest rates. That fund continues to earn interest, and the interest earnings are available to make payments on the bonds. The money exists in this fund until the end of the issue and makes the final payments on the bonds. It is an added sectrity device, but it does take up a portion of e bond proceeds. There is also the cost of he bond issuance and underwriter discount whi h are also included in the total c sition of the issue. Mr. Wensits asked if the acquisition of the State Theater is considered as part of this issue. Mr. Hunt responded by saying the C ssion does not plan to use TIF bond funds for that acquisition. There are other sources available. If priorities would change or a project would not come on line in time to use the bond proceeds, we could shift that money to the State Theater, but we are not anticipating that acquisition out of the bond Mr. Piasecki asked if the monies generated by the TCU garage can be used to pay off the bonds. Ms. Schwartz stated that leases of property owned by Redevelopment or monies acquired by Redevelopment from selling property comes back in and is by statute required to at least go into the bond fund to pay principal and interest on the bond. -11- South Bend Regular Me 6. NEW BU a. Co. elopment Commission - August 23, 1985 ( font . ) Mr. Treptow clarified that the principal amoimts of the bonds mature from the years 1990 through 2003. There is a provision in the bond resolution that is being considered that would allow the bonds maturing in 1997 and thereafter to be subject for prepayment as ear .y as 1996 or any interest payment date thereafter. There will be no penalty for ear y payment of the bonds should revenues be sufficient to allow that. About 70% of the bonds issued are subject to prepayment. Ms. Schwartz asked that some minor technical ameridments to Resolution No. 747 be accepted by the Commission. A clarification and designation of registrar and paying agent as American Fletcher National Bank in Indianapolis, having bonds being dated the first day of the month of which they are to be delivered, and clarification of provisions in Section 6 are the requested amendments. Upop a motion made by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Conpission approved Resolution No. 747 authorizing the issuance of tax increment revEmue bonds for the purpose of raising money for property acquisition and redevelopment in the South Bend Central Development Area. b. Fil�ng of Resolution No. 748, a resolution of the South Bend RedevelMnent Commission appropriating Four Million Two Hundred Thousand Dollars ($4,200,000) for acquisition and redevelopment in the South Bend Central Development Area and related costs, and authorizing publication of notice of proposed additional appropHation and setting a public hearing on the proposed additional appropriation. Ms. Schwartz stated that what is being requested is that the Redevelopment Commission file this supplemental appropriation resolution which is a technical requirement when planning to issue bonds during the fiscal year for which a budget has previously been ado ted. Resolution No. 748 basically finds -12- RESOLUTION NO. 747 AUTHORIZING_ THE ISSUANCE (F TAX INCREMENT REVENUE BONDS FOR THE PURPOSE OF RAISING MONEY FOR PROPERTY ACQUISITION AND REDEVELOPMENT IN THE SOUTH BEND CEN'T'RAL DEVELOPMENT AREA WAS APPROVED South Bend Regular Me 6. NEW BU b. Coi al Tri be ma elopment Commission - August 23, 1985 (Cont.) .s that weren't budgeted for previously, efore, the Commission is required to issue .s to make up that expenditure, and that amount of those bonds be appropriated for purposes of redevelopment within this TIF cation area. There will be a notice ished in the South Bend Tribune and County News as required by State statute, the staff requests that a public hearing et for September 13 related to this er. The Commission approved the filing of Resolution No. 748, a resolution of the South Bend Redevelopment Commission appropriating Four Million Two Hundred Thousand Dollars ($4,200,000) for acquisition and redevelopment in the South Bend Central Development Area and related costs, and authorizing publication of notice of proposed additional appropriation and setting a public hearing on the proposed additional appropriation Ms. Schwartz asked that the Commission authorize publication of Notice of Proposed Additional Appropriation and set the public hea ing for September 13, 1985, at the 10:00 a.m, regularly scheduled Redevelopment Co ssion meeting. Upo a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Commission authorized the publication of Notice of Proposed Additional Appropriation and set the public hearing on September 13, 198 , at the 10:00 a.m. regularly scheduled Red velopment Commission meeting. Mr. Nimtz thanked Richard Hill and Eugenia Sch artz for their work on the TIF bond issue. He also thanked Jon Hunt, Ann Kolata and all rs of the staff that worked on the TIF iss e. Also, thanked was Springsted, Inc., in particular Mr. Richard Treptow. c. Comnission approval requested fora proposal and grant in connection with the Emergency Repair Program in accordance with the recommendation from the Bureau of Housing. -13- COMMISSION APPROVED THE FILING OF RESOLUTION NO. 748 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROPRIATING FOUR MILLION TWO HUNDRED THOUSAND DOLLARS ($4,200,000) FOR ACQUISITION AND REDEVELOPMENT IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA AND RELATED COSTS COMMISSION ATHORIZED THE PUBLICATION OF NOTICE OF PROPOSED ADDITIONAL APPRO- PRIATION AND SET THE PUBLIC HEARING FOR SEPTEMBER 13, 1985, AT THE 10:00 A.M. REGULARLY SCHEDULED REDEVELOP- MENT COMMISSION MEETING South Bend Regular Mee 6. NEW BUS c. Con elopment Commission - August 23, 1985 (Cont.) d... Contractor She is A. Johnson Jurtin's Construction Company $2,000.00 319 McPherson Upon a motion made by Mr. Piasecki, seconded by 11s. Auburn and unanimously carried, the Co ssion approved a proposal and grant in corniection with the Emergency Repair Program as fisted above. COMMISSION APPROVED A PROPOSAL AND GRANT IN CON- NECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE d. Co omission approval requested for bids and loans in connection with the Affordable Loan Program in accordance with the recommendation from the Bureau of Housing. Name Contractor Bid Loan Herbert & Lucille Gladney Hanks Enterprise $16,005.00 $12,550.00 426 Walsh Street Katlierine Hughley Plaia Construction Co. $24,602.00 $12,800.00 511 E. Howard Street Samiel Smith B & C Construction Co. $24,677.00 $13,600.00 138 E. Pennsylvania Kawana M. Lewis Plaia Construction Co. $11,749.00 $ 6,200.00 1114 E. Bowman Easter Williams Plaia Construction Co. $21,682.00 $11,300.00 918 W. Oak Street J s & Eurla Johnson Hanks Enterprise $21,983.00 $11,450.00 120 S. Cherry Street Rebecca F. King Jurtin Construction Co. $32,445.00 $16,850.00 726 N. Hill Street Mr. Hunt noted the fine job done by the Bureau of Housing staff on their rehab estimates versus the bid amounts, which are very close. Mr. Piasecki asked if there were any land con racts included in these loans Ms. Richmond stated that if there were any lanj contract balances under $3,000, that -14- South Bend Regular Me 6. NEW BU d. Co e. elopment Commission - August 23, 1985 (font.) amo t is refinanced with the loan. If over $3,300, the applicant is asked to apply for their own refinancing through a local bank. Upo a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Comnission approved bids and loans in co ection with the Affordable Loan Program as listed above. Mr.imtz thanked Mary Richmond and the Bureau of Housing staff for their good work. sion approval req n the South Bend sion and the CT ty located.within Area. ested for a lease edevelopment orporation for the South Bend Central Mr. Hunt explained that the Commission has been leasing for $1.00 certain property within the downtown to do limited public works and landscaping for an interim strategy of cleaning up the downtown. The property in question is located immediately north of the Ne 's building. There is a strip of unsightly land between that building and the parking lot owned by CLF Corporation. The staff is recommending that the Commdssion lease a small portion of CLF's property to clean it up and do minimal landscaping to imp ove the site. Upo a motion made by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Comnission approved a lease between the South BenJ Redevelopment Commission and the CLF Co ration for property located within the Sou h Bend Central Development Area. f. St4f report on bid opening of August 19 Ms. Gretchen Matthews gave a preliminary staff repDrt on the bid opening of August 19, 1985, for Redevelopment owned property, commonly referred to as the Mill Race site, bounded by LaSalle Street, the East Race and the St. 0612 COMMISSION APPROVED BIDS AND LOANS IN CONNECTION WITH THE AFFORDABLE LOAN PROGRAM AS LISTED ABOVE COMMISSION APPROVED A LEASE WITH THE CLF CORPORATION FOR PROPERTY LOCATED WITHIN THE SOUTH BEND CENTRAL DEVELOP- MENT AREA South Bend Regular Mee 6. NEW BUS f. Con Jos, fir Ass, Hol 121 tow uni apa . one bed $42 inc uni fla 1,5 sit wil and The al due the est. elopment Commission - August 23, 1985 (Cont.) ph River. Two bids were received. The -t is from Mill Race Recreational ,ciates which is affiliated with the aday Corporation. The project consists of residential units, 21 of which will be houses with one garage space under each and 100 one floor apartment flats. The tments will range from 700 s.f. for the bedroom flats to 1,250 s.f. for the three oom townhouses. The rents will range from per month to $720 per month, which will ude water, sewer and one parking space per 1. 74 parking spaces for the apartment .s will be garage spaces. There will be a .1 of 240 parking spaces. This will ude approximately 60 spaces for the second e of the project which is a 15,000 s.f. th club facility to be located in the .er of the project with an outdoor swimming and fitness course. There will also be a 0 s.f. commercial building included on the The height of the residential units be three stories for the center portions two stories for the end portions. The osed materials would be brick and wood. project is expected to be completed in two es. The first phase would be completed in which would consist of 61 of the dential units and the health club. The nd phase would be completed in 1987 which d be the other 60 units. The proposed hase price is $300,001.00 subject to ral concerns, including possible fications to a public access easement g the St. Joseph River and the other ing with excessive site preparation costs to old foundations and raceways underneath existing land. The total project cost is mated at $5.7 million. The proposed lopers would be using Multi - family Revenue .s to fund the project and would be ying for tax abatement. The second proposal was received from Clinton E. Hutchcraft & Associates on behalf of a partnership to be formed under Indiana law. The proposed project would consist of 204 residential units, 96 of which would be one Bt-is STAFF REPORT ON BID OPENING OF AUGUST 19, 1985 South Bend Regular Me, 6. NEW BU, f . Col elopment Com-nission - August 23, 1985 (Cont.) bedroom and 108 would be two bedroom units. The one bedroom units would be 740 s.f. and the two bedroom units would be 980 s.f. The ran e on the rents would be from $420 to $550 per month. This would include 1.35 parking spaces per unit, refrigerators, central air, was er and dryer. Other features of the project include a club house, outdoor swimming pool, and a two story parking structure with two tennis courts above. Total parking would be 286 spaces. The residential units would be three stories. The proposed materials would be wood and brick or stone pcssibly including so solar panels. The estimated completion date would be late 1986 or early 1987. The pro sed purchase price is $300,000.00. The total project cost is estimated at $9.7 million. The financing would be through Multi-family Revenue Bonds, and the developers would also be applying for tax abatement. Bota parties are interested in starting as soon as possible. The partners involved in the Mill Race Recreational Associates are Wallace F. Holladay, Sr., John T. Phair, Charles G. Clark, and Thomas C. Gibson. The proposed partners involved with the Clinton C. Hut hcraft Partnership located in Indianapolis would be Clinton E. Hutchcraft, Charles R. Gle,i, Patricia J. Sure, and Michael J. Mr. Nimtz noted that the staff is making no recommendation at this time because the project is still under study. The Commission will make a decision on who to award the bid as -oon as possible after the staff report is co leted. Mr. Hunt reported that he, Beth Leonard, Betsy Harr' , Don Inks, Marcia Ullrey, Colleen Rosenfeld and Pam Meyers on August 17th partici Dated in painting a house owned by an older a ult as part of the NHS Paint -Up Program. Mr. Hunt stated that the house looked ery nice, and he was proud of the staff t at volunteered for the house painting. -17- PROGRESS REPORTS South Bend Regular Mee 7. Mr. HL Mayor/ a.m. f a preE additi Of f icE be att Becky of the Center the sp skywal 8. NEXT C 91 tedevelopment Commission :ing - August 23, 1985 > REPORTS (Cont.) . also reported that an Informal ,uncil meeting is scheduled for 11:30 lowing the Commission meeting to make .tation on the TIF bond issue. In Chris Davey and Dave Hab, leading in Center City Associates, will also .ding as the bond issue relates to the . development. Also attending will be ,nham, Convention and Tourism Division hamber of Commerce, and Brian Hedman, Center, to express their interests in -off possibilities of the pedestrian MEETING The ne# Regular Meeting of the Commission Will be held on Friday, September 13,, 1985 at 10:00 a.m. There ing no further business to come before the Co fission, Mr. Combs made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and it was unanimously carried. The meeting was adjourned at 11:15 a.m. NEXT COMMISSION MEETING 911MIa12100N