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HomeMy WebLinkAboutRM 07-11-86SOUTH BEND REDEVELOPMENT COMMISSION REGULAR SCHEDULED MEETING July 11, 1 86 10:00 a.m. Presiding fficer: Mr. F. Jay Nimtz President 1. ROLL 2. 3. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Present: Mr. F. Jay Nimtz, President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho, Assistant Secretary Mr. Sandy Combs, Member Absent: Ms. Paula Auburn, Vice President Legal 0ounsel: Ms. Eugenia Schwartz Redeve opment Staff: Mr. Jon R. Hunt, Executive Director Mrs. Ann Kolata, Executive Deputy Director Ms. Denise Sullivan, Office Manager Bureau of Housing Staff: Mr. Ted Leverman, Acting Director News Media: Ms. Margaret Fosmoe, South Bend Tribune Mr. Dick Maginot, WSBT -TV Mr. Gary Sieber, WNDU -TV Ms. Beth Martin, WZZP Radio Mr. Mark Kelley, WSJV -TV Othersi Ms. Glenda Rae Hernandez Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the minutes of the Rescheduled Regular Meeting of Friday June 30, 1986 were approved. OF CLAIMS Upon a motion made by Mr. Combs, seconded by Mr. Do oho and unanimously carried, the Commis ion formally approved the claims submitted June 19, July 2 and July 10, 1986, and ordered checks dated July 1, July 9 and July 10, 1986 to be released. COMMISSION APPROVED MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 30, 1986 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED JUNE 19, JULY 2 AND JULY 10, 1986 AND ORDERED CHECKS DATES JULY 1, JULY 9 AND JULY 16, 1986 TO BE RELEASED South Bend Redevelopment Commission Regular Meeting - July 11, 1986 3. APPROVIffi OF CLAIMS (Cont.) P.E.A. R -66 Burke Technologies $ 26.00 Business Communication Center 324.60 Exclusively Business 342.70 James Bixler 20.40 Ann Ko ata 10.00 General Funds 187.81 Indiana Bell Communication 296.68 Bruning DISTRICT BONDS 1972 53.80 Clyde E. Williams & Associates 600.00 Businerss Update 39.00 The Lunch Box 174.10 lst Source Bank Auto Lease 231.71 PDH Of ice Supply 384.79 Downtox,n Research & Develp. Center 94.00 Fortune 40.04 Indiana Bell Communications 296.68 The Lunch Box 30.90 Petrol um Traders 25.79 Travel re 649.00 General Fund 658.92 General Fund 145.15 Payroll: 6 -7 thru 6 -20 -86 13,095.61 Payroll: 6 -21 thru 7 -4 -86 13,223.93 Total $30,951.61 T.I.F. Ken He ceg & Associates $ 202.50 Cole Associates 33,120.00 Cole Associates 22,800.00 Eck Construction 9,650.00 Universal Painting Co. 1,985.25 Universal Painting Co. 224.50 Total $67,982.25 REDEVEIOPMENT DISTRICT BONDS 1972 Handli g Technologies $ 2,720.00 Total $ 2,720.00 Grand Total $101,653.86 -2- South Bend Redevelopment Commission Regular Me ting - July 11, 1986 4. a. Letter from South Bend Public Transportation Corporation. Mr Hunt noted that a letter from John R. Grew, General Manager of TRANSPO, was sent to the Commission. The letter informed Mr. Hunt that the TRANSPO Board of Directors has awarded a contract to Carl J. Reinke and Sons, Inc., for construction of improvements to the South Bend Transfer Center. The contract am unt is $274,610 and construction is due to begin on July 14. Th re were several minor deviations from the amEmded Contract for Sale of Land between the Redevelopment Commission and TRANSPO. Mr. Gr w is asking that the Com-nission consider approval of two items. One is that the contract specified that no less than $362,000 be expended on improvements. The contract amount is less due to TRANSPO receiving a favorable bid in the amount of $274,610. The second item changed is that the construction will begin within sixty -five (65) days of approval of the plan by the Design Review Co ttee, not the required sixty (60) days. Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Corimission approved the above noted changes in tM Contract for Sale of Land and authorized th President and Secretary to execute any and all necessary documents to authorize these 5. OLD BUSINESS There vkas no old business. 6. NEW a. for a in connection with the Emer< gram in accordance with the from the Bureau of -3- COMMISSION APPROVED THE ABOVE NOTED CHANGES IN THE CONTRACT FOR SALE OF LAND AND AUTHORIZED THE PRESIDENT AND SECRETARY TO EXECUTE ANY AND ALL NECESSARY DOCUMENTS TO AUTHORIZE THESE CHANGES RE- LATED TO TRANSPO THERE WAS NO OLD BUSINESS South Bend Redevelopment Commission Regular Me ting - July 11, 1986 6. NEW BUSINESS (Cont.) a. Coitinued... Contractor Vitoria Fuentes Colip Electric Corporation 52 S. Warren U n a motion made by Mr. Donoho, seconded by Mr. Combs and unanimously accepted, the Cormission approved a proposal and grant in cormection with the Emergency Repair Program as listed above. b. Corjmiission approval Re olution No. 778 South Bend. for Joint the South Bend ion and the Board of Park Park District of the City Ms Schwartz noted that this Joint Resolution authorizes the Commission to convey to the Park Board two additional pieces of land which were inadvertently left out of the previous joint resolution relating to property acquired ioj the Stanley Coveleski Regional Stadium. Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Joint Resolution No. 778 of the South Bend Redevelopment Commission and th Board of Park Commissioners of the Park Bo d of the City of South Bend. c. Corraission approval requested for Resolution No 779 amending Resolution No. 775 of the City of South Bend Redevelopment Commission. Mr Hunt explained that Resolution No. 775 was the original resolution that was passed by the Commission for the second tax increment fiiiancing bond in the amount of $2,565,000. Resolution No. 779 is an amendment of that original bond amount. Mr Richard Hill, legal counsel for the TIF bond, explained that in adopting Resolution No 775 the Commission authorized the issuance of tax incremental bonds in the amount of $2,565,000. That resolution was pursuant to th terms of the 1985 bond resolution which -4- $240.00 COMMISSION APPROVED A PROPOSAL AND GRANT IN CONNECTION WITH THE EMERGENCY REPAIR PROGRAM AS LISTED ABOVE COMMISSION APPROVED JOINT RESOLUTION NO. 778 OF THE SOUTH BEND REDEVELOPMENT COMMISSION AND THE BOARD OF PARK COMMISSIONERS OF THE PARK BOARD OF THE CITY OF SOUTH BEND South Bend Redevelopment Commission Regular Me ting - July 11, 1986 6. NEW BUSINESS (Cont.) c. c:omtinuea... said that under certain circumstances bonds on parity are of equal standing to the 1985 bonds to be issued by the Redevelopment Commission, if among other things the financial advisor to the Commission, Springstead Inc., could certify that the estimated tax increment would be equal to at least 150% of the principal and interest payments that would be due during the terms of both the 1985 and 1986 bonds. At this time the State Tax Board is in the process of issuing rules pertaining to the calculation and the estimate of the tax increment. Additionally, there is a legislative study committee headed by Lloyd Taylor that is going to be looking at tax incremental bonds in addition to other economic development tools. In normal circumstances the Commission could await the final implementation of the rules that will be promulgated by the State Tax Board, but because of a September lst deadline related to th Federal Tax Reform Act, which might cause tax incremental bonds and other municipal bonds to be taxable. The Commission scheduled th sale and closing on the bond issue prior to the September lst deadline. Upon consultation with Springstead it was decided to reduce the amount of the bond and to file an amended certificate so that irrespective of whatever decisions and determinations were made by the State Tax Board the bond would always meet that 150% coverage allowing the parity bond requirements to continue to be met du ina the life of both the 1985 and the 1986 Mr. Richard Treptow, Springstead Inc., exl)lained the modifications and the financial data that are contained in the amended certificate that will be filed as an exhibit to Resolution No. 779. Mr. Treptow noted that th original projections were based on favorable determinations that would be made at th State level and were done without a lot of th detailed number crunching that would determine what the tax increment revenue is ac Oally going to be based on assessed va uation in place as of March 1, 1986. Two -5- South Bend Redevelopment Commission Regular Me ting - July 11, 1986 6. NEW BUSINESS (Cont.) c. continuea... things have happened since the original projections. One is that the tax increment revenue which would be available as of March 1, 1986 to pay tax increment bonds has been recalculated. Assuming that favorable determinations are made at the State level, th Commission could sell approximately $3,200,000 of additional bonds. However, assuming that unfavorable determinations are made at the State level and that revenues decrease accordingly, a bond issue of $1,750,000 is recommended. This size bond would include $1,387,000 for project costs plus added interest earned prior to the exlenditure of the bonds, $183,000 for a debt se ice reserve which will be invested for protection to the Commission and the bond holder in the event tax increment revenue is short, issuance costs estimated at $80,000, a $4 ,750 allowance for discount for the underwriter, capitalized interest in the amount of $20,000 and bond insurance costs of $3 ,600. Mr. Hunt noted that, due to the more conservative approach to establishing the amount of money available for projects, a cutback will be made in several projects that th Department was looking at for 1986 and 19K. The Michigan Street expansion was set as a priority and will be continued. The Ginz AvEnue and Seitz Park project for additional pa king will still be a priority. The cutbacks will be in the area of general public wo ks planned in the downtown and East Bank, anq possible acquisitions initially proposed. Upon a motion made by Mr. Piasecki, seconded by Mr. Combs and unanimously carried, the Conmission approved Resolution No. 779 am ding Resolution No. 775 of the City of South Bend Redevelopment Commission. Chair on behalf of the Commission thanked staff for all the hard work done on wring this bond issue particularly Loren ey and John Fonash, along with Richard ,tow and Richard Hill. The Portage COMMISSON APPROVED RESOLUTION NO. 779 AMENDING RESOLUTION NO. 775 OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION South Bend edevelopment Commission Regular Me ting - July 11, 1986 6. NEW BUSINESS (Cont.) c. c;onitinuea... n e. p Assessor and County Auditor were also .for their cooperation with the staff. Mr.1 Hunt noted that the bond issue is somewhat ah d of schedule. Approval has been received fr the State Tax Commissioners on this bond is e. Coomission ratification requested for submission of a petition to the Board of Zoning als for the South Bend Central Par<ing Facility. Mrs. Kolata noted that some of the parking spaces being planned for the City garage at the corner of Michigan and Washington Streets do not meeting the current zoning ordinance in terms of size. In order to receive a building pe t for the project, either all the spaces need to meet the certain size or get a variance from the Board of Zoning Appeals. It is the staff's recommendation that the Commission seek a variance on the size of spa es in order to allow as many public par 'ng spaces a possible into the downtown. The public hearing on this variance will be Jul 24th. Upon a motion made by Mr. Combs, seconded by COMMISSION RATIFIED THE Mr. Donoho and unanimously carried, the REQUEST FOR SUBMISSION OF Commission ratified the request for submission A PETITION TO THE BOARD of a petition to the Board of Zoning Appeals OF 'ZONING APPEALS FOR THE for the South Bend Central Parking Facility. SOUTH BEND CENTRAL PARKING FACILITY Ccolmission approval requested for leases with Helen Brook, Roger Atwell and Rudolph K. Mueller for property located at 212, 214 and 218 South Michiaan Street. Mr. Hunt explained that since the Commission purchased the State Theatre it is necessary for the tenants currently in the storefronts to enter into a lease arrangement with the Commission. All three tenants have agreed to lea 3e arrangements at the rent that was in pla e prior to the Commission's acquisition of the Theatre. -7- South Bend Redevelopment Commission Regular Me ting - July 11, 1986 6. NEW BUSINESS (Cont.) e. Lomtinuect .. . Kolata further noted that the leases are active to January 1, 1986 with the first 1 payment due July 1, 1986. The primary n for the delay in entering into the s was related to the amount of insurance red by the tenants. Upon a motion made by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved leases with Helen Brook, Roger Atwell and Rudolph K. Mueller for property located at 212, 214 and 218 South Mi higan Street. •:6H::�, .�. Mr. Hunt reported that the Redevelopment staff is in the process of gathering information to prepay a cost/benefit analysis of the Monroe Park area to be presented to the Commission and th City Council. That report will at that t' be available to the public. Mr. Hunt also reported that the Michigan Street project is on schedule. There has been an increased interest in the available retail space in the downtown. Western Avenue has opened up to two -way traffic. The east side of the south block of Michigan Street will not be ccmpleted until after the completion of Phase I of One Michiana Square due to the staginc area needed. Designs are being preparEd for the third block of Michigan Street improvements. The tree planting will not be done until after the summer due to the planti g season. Planters, trash receptacles and be ches are being ordered and will be receiv6d in about 7 -8 weeks. 8. NEXT COMMISSION MEETING The Will a.m. Regular Meeting of the Commission held on Friday, July 25, 1986 at 10:00 COMMISSION APPROVED LEASES WITH HELEN BROOK, ROGER ATWELL, AND RUDOLPH K. MUELLER FOR PROPERTY LOCATED AT 212, 214 AND 218 SOUTH MICHIGAN STREET PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Regular Me, 9. ADJOUR There the Coy that t: second, carrie a.m. elopment Commission - July 11, 1986 eing no further business to come before mission, Mr. Piasecki made a motion e meeting be adjourned. Mr. Combs d the motion and it was unanimously . The meeting was adjourned at 11:05 L R. Hunt, ve