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HomeMy WebLinkAboutSM 07-29-88July 29, 19 10:00 a.m. Presiding C 1. ROLL Legal Redev News 2. NEW B a. E SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING 8 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 Absent: Mr. Sandy Combs, Assistant Secretary Mr. Michael Donoho 1: Ms. Carolyn Pfotenhauer Staff: Mrs. Ann E. Kolata, Deputy Executive Director Mrs. Martha Lantz Ms. Jeanne Derbeck, South Bend Tribune Mr. Thom Howell, U -93 of Addendum to Lease between th Bend Redevelopment dated as of June 1, 1988 (St. e Parking Facilitv). Mrs. Kolata explained that on July 26th the Redevelopment Authority received bids for the Bonds for the Parking Facility and the Coveleski Stadium Project and awarded the bids for both to Bank One. The Lease between the Redevelopment Comnission and the Redevelopment Authority for both facilities were pre iously approved with estimated rental payments. Now that the Bond bids have been awarded, the actual rental payments and other costs can be entered into the Lease. The estimated Lease payment of $520,000 per year for the Parking Facility is being lowered to $463,000 per yea , or $231,500 per semi - annual pa nt. so South Bend Special MeE 2. NEW BU: a. Cor elopment Commission — July 29, 1988 ( font . ) Mr. Piasecki asked what the Commission would do if there was not enough money to make the payments. Mrs. Kolata responded that the money for each year's payments must be available by August 1 of each year or the Commission will be required to levy taxes sufficient to make the pa ent. Our projections indicate that we should always have sufficient money frcm the various revenue sources to make tho payment without levying taxes. Upcn a motion by Ms. Auburn, seconded by Mr. Piasecki and unanimously carried, the Conmission adopted Resolution No. 853 reducing the annual rental on the lease for the St. Joseph/Wayne Parking Facility anj approving the execution of an Addendum to the Lease. b. Ex cution of Addendum to Lease between thE South Bend Redevelopment Authorit and the South Bend Redevelopment Commission dated as of June 1, 1988 (Ccveleski Stadium Protect). Mrs. Kolata noted that it will not be necessary to amend the lease with the Authority for the Coveleski Stadium Pr ject. At the time the Lease was signed, a figure of $1,000,000 per year was used as an annual rental payment, based on the decision that it would not make sense to refinance if the cost was higher than that. Therefore, the Lease stipulated a $500,000 semi - annual rental payment. The Lease requires that the payments be equal to the largest principal and interest payment over the life of the Bond, rounded to the next thcusand dollars, plus an additional one thcusand dollars. The largest principal and interest payment is $498,037 which, therefore, would require lease payments of $500,000, the same figure used in the Lease. No Addendum is then required to am +d the Lease. That payment will allow -2- COMMISSION ADOPTED RESOLUTION NO. 853 REDUCING THE ANNUAL RENTAL ON THE LEASE FOR THE ST. JOSEPH/WAYNE PARKING FACILITY AND APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE NO ACTION NECESSARY ON THIS ITEM South Bend Special Me 2. NEW BU b. Coii 4. wi th of There b the Corn adjourn motion a.m. elopment Commission - July 29, 1988 ( font . ) !ss funds to accumulate in our account the Trustee which will be used at end of the Bond to reduce the amount he levy. The net savings over the of the issue is $389,000. ing no further business to come before fission, Mr. Piasecki made a motion to the meeting. Ms. Auburn seconded the nd the meeting was adjourned at 10:20 ro MCIM lata, Deputy Executive Director