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HomeMy WebLinkAboutRM 12-20-88-1- SOUTH BEND REDEVELOPMENT COMMISSION RESCHEDULED REGULAR MEE'T'ING 1200 County -City Building h,Y 227 W. Jefferson Boulevard .," F. Jay Nimtz South Bend, Indiana 46601 President Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice President Mr. Raman J. Piasecki, Secretary Mr. Sandy Combs, Assistant Secretary •.i Mr. Michael Doncho r' Ms. Carolyn Pfotenhauer Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager News `'' Mr. James Wensits, South Bend Tribune Mr. Thom Howell, U -93 Ms. Amanda Hart, WAOR 12 • . ID`3iJ`IIiS Approve minutes of the Regular APPROVAL OF MINUTES OF THE 9, 1988, was postponed- REGULAR MEE'T'ING OF DECEMBER 9, 1988 WAS POSTPONED 3. APPRO OF CLAINLS 24.89 �j 139.40 C. 'ii:r , 73.25 N'Cf 485.00 40.25 .1 615.64 . Mori~ 31.17 13.50 -r 762.00 �;. 320.90 Lamont, Inc. 67.15 2,573.15 : nstxzction, Inc. $ 353.91 Tot, `" TI 1AX_ 1985 $ 353.91 -1- South Bend Redevelopment Commission Rescheduled Regular Meeting - December 20, 1988 3. APPRO � _OF CL UM ( font . ) 4: Shifts 2-raves & Associates, Inc. $ 85.00 Chuck & Sons Heating & Plumbing Co. 350.00 Total T.I.F. 1986 $ 435.00 Center ity Associates $ 649.45 Indiana Michigan Power 93.83 Total T'-I.F. 1988 $ 743.28 Grte id; 'i tal $ 4,105.34 Upon a motion made by Ms. Auburn, seconded by COMMISSION APPROVED THE CLAIMS Mr— C s and unanimously carried, the SUBMITTED DECEMBER 12, 1988 AND Commission formally approved the claims ORDERED CHECKS DATED DECEMBER 16, submitt December 12, 1988 and ordered 1988 TO BE RELEASED checks dated December 16, 1988 to be released. N Kol to noted that there was a letter from Holladay Corporation regarding tax abatement which she would like to consider as an additional agenda item under New aal:3. There were no objections and the it�mn-w&81added to the agenda as item 6.e. ThWW,V-764, no old business. fi. '1NE63_:z llmss. a, - f. �_o aMroyal re i It to Cbntract ivate_ Developmen Bend Cent for -2- El- A COMMUNICATION FROM HOTLADAY CORPORATION REGARDING TAX ABATEMENT WAS ADDED TO THE AGENDA AS ITEM 6.E THERE WAS NO OLD BUSINESS South Bend Pedevelcpment Commission Rescheduled Regular Meeting - December 20, 1988 6. NEW .BUSAMS (Cont.) a« continued... Mrs Kolata explained that items 6.a., 6.b., 6.c., and 6.d. are all related to the Can - American South Bend Limited p project in the East Bank Can Am is scheduled to close on their financing on December 22, 1988, and there are a number of loose ends to be cleared up before that. The Fourth Amendment to Contract for Sale of amends dates within the Conixact. It provides for delivery of the'Deed by December 22, 1988, payment of the purchase price by December 30, 1988, and start of construction by February 20, 1989. We will be delivering the deed to the title company who will hold it until the money is received. The time period for construction will remain 15 months. Another change to the Contract allows for the developer to make encumbrances on the property prior to the Comnission's issuance of a certificate of Completion. Mr. Nintz asked Mrs. Kolata to explain why it is necessary to delay the start of ,construction. Mrs. Kolata explained that is still negotiating some of the ion contracts. ., iasecki asked what would happen if the ROneY did not arrive by December 30. Mr Kolata responded that the title would continue to hold the deed. �e itle company will not record the or release the deed until the money ft its asked what the purchase price :was,.. o 'r_ the property. Mrs. Kolata that the price was $300,000. Mr. its asked what the Commission had paid I for the land and if that was -3- South Bend Redevelgpment Coin fission Reschedule4 Regular Meeting - December 20, 1988 21 a. IW C. (Cont.) considered a good investment. Mrs. Kol to responded that the purchase of the land, demolition of the three buildings on it and the relocation of the businesses was approximately $1,000,000. She considers it a good investment use the land will be returned to the tax rolls and there will be 200 apartment units and more than 200 people living near the downtown. She expects it to set the stage for a certain type of dev opment which has not happened in the dowttown area. Upon a motion by Mr. piasecki, seconded by Mr. Combs and unanimously carried, the Commission approved the Fourth Amendment to ntract for Sale of Land for private Dev opment for parcel E1 -1 in the South Central Development Area. Mrs Kolata explained that under the terms of the Contract for Sale of Land, the developer may not change the form of the partnership without the Commission's approval. Can Am is proposing to modify the partnership. Can- American will continue to be the general partner. Garrett Carlson, Shelter Can- American and Brian Weber will be limited partners. 'Thes e are the same people we have been dealing with all along. The changes are in tlie redistribution of the partnership. Upon a motion by Mr. Combs, seconded by Ms. Auburn and unanimously carried, the COMLssion approved the changes to the Partnership Agreement for Can Am South Bend Limited Partnership. -4- COKnSSION APPROVED E FOURTH AMENDMENT T• CONTRACT F• - SATIE OFF CENTRAL IAND FOR PRINATE DEVELOPMENT FOR PARCEL E1-1 IN THE SOLTJ[H BEND •- E *kq4ISSI0N APPROVED THE CHANGES TO THE PARrNERsBip AaREEmENT FOR SOLITH BEND IJMI= PARTNERSHIP South Bend evelopment Carmnission Reschedulel Regular Meeting - December 20, 1988 6. NEW BUSINESS (Cont.) c. Continued... d. Mrs. Kolata explained that we had recaived a letter notifying the Comnission that upon the purchase of the lani, Can Am will grant a mortgage on the lani and other mortgageable interests to Sou east Bank NA as trustee under a tru3t indenture dated December 1, 1988 to sec e payment of the multi - family housing revenue refunding bonds for the Po' ite at St. Joseph project. Upon a motion by Ms. Auburn, seconded by Mr. Combs and unanimously carried, the Commission authorized a mortgage to be placed on Parcel E1 -1 in the South Bend Centxal Development Area. Mrs. Kolata noted that at the December 9th meeting the Commission authorized an easement along the river on Parcel E1 -1. It was not made clear at that time to whom the easement was being granted. The original deed was drafted to include the easement. We have since decided to remaie it from the deed and grant the t to the Park Department. Can--American would then take possession Of property with that easement in pl . The Park Department accepted the ease t at its December 19th meeting. This ratification acknowledges the easement with the Park Department. Mks. Kolata also noted that the easement contains a provision for Can Am to enter the easement for emergency maintenance if the k Department does not maintain the publ c walkway. COMMISSION AUTHORIZED A MORTGAGE TO BE PLACID ON PARCEL E1 -1 IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA Upon a motion by Mr. Combs, seconded by COMMISSION RATIFIED THE EASEMENT Mr. Piasecki and unanimously carried, the TO THE PARK DEPARTMENT ON PARCEL Ccmmss'On ratified the easement to the E1 -1 IN THE SOUTH BEND CENTRAL Park Department on Parcel E1 -1 in the DEVELOPMENT AREA South Bend Central. Development Area. -5- South Bend Pedevelopment Commission Reschedulel Regular Meeting - December 20, 1988 6. NEW WAINESS (Cont.) d. Continued... e. a motion by Mr. combs, seconded by Ms. Auburn and unanimously carried, the Comnission authorized the President and Secmtary to execute the deed to Can Am Sou.h Bend Limited Partnership and to delver the deed to Abstract and Title Co ration for the closing to the tra ction, pending the receipt of the $300,000 purchase price by the Dept. of MrssKolata read the letter from Holladay 20, 1988 Economic Development Cc mission Department of Economic Development 1200 County -City Building 227 West Jefferson St. South Bend, IN 46601 Members of the Cco mission: s/Washington Associates is very sed to be the successful bidder for els E3 -3, E3 -4 and E9 -11. As we ioned to you earlier, our corporate nt is very anxious to occupy our new ding in October of 1989. In order to mplish this, we will be moving very kly towards construction. Prior to ring building permits, however, we need to file for a 10 year tax ement for the site. We would eciate it very much if the fission, as current owners of the arty, would agree to initiate the tax mint petition in our behalf. We 3 then be able to ccnnence truction immediately after closing. c you for your cooperation and we are ing forward to working with you on project. i•`�i�I • 1 I .140 0):Q1 a MAN 1 �- • 24 1 •� 1 WN ID 1 M • I South Bend Redevelopment Commission Reschedule4 Regular Meeting - December 20, 1988 6. NEW BU INESS e. Continued... Sir, cerely, Da 'd B. Behr 7. 8. Mrs. Kolata explained that as property own Brs, the Redevelopment Commission wOU d have to file for the tax abatement on f of Niles/Washington Associates. Mr. Wensits asked how a public entity can see c tax abatement when it does not pay tax . Mrs. Kolata responded that by the t' the abatement is approved, the devi qcper will own the land. Mr. Wensits asked when the developer wo d reveal who the tenant of the building will be. Mrs. Kolata responded that the announcement should be made very Upon a motion by Ms. Auburn, seconded by Mr. combs, the commission agreed to initiate the filing of a tax abatement on behalf of Niles/Washington Associates for parcels E3 -3, E3 -4 and E9 -11 for the length of time agreed upon between Holladay Corporation and the staff. COMMISSION AGREED TO INITIATE THE FILING OF A TAX ABATEMENT ON BEHALF OF NILES/WASHINGTON ASSOCIATES FOR PARCELS E3 -3, E3 -4 AND E9 -11 FOR THE LENGTH OF TIME AGREED UPON BETWEEN HOLLADAY CORPORATION AND THE STAFF Mr. Thcn Howell asked about the status of the PROGRESS REPORTS petition drive. Mrs. Kolata responded that we feelwe need more signatures and will probably have a new thrust right after the New Year. The petition process has slowed down duel to the holidays. The next meeting of the Comission will be its Amuil Organizational Meeting on January 3, 1989 at 10:00 a.m. arm NEXT COMMISSION MEETING South Bend evelopment Commission Reschedule4 Regular Meeting - December 20, 1988 a There being no further business to come before the Commission, Mr. Combs made a motion that the meeting be adjourned. Ms. Auburn seconded the motion and the meeting was adjourned at 10:35 a.m. 4 .� l A F.IWICIR141 Ann E. Kolata, Deputy Executive Director Can - American Realty Corporation Decembe$ 16, 1988 Commiss oners South Bend Redevelopment Commission 1200 County-City Building 227 West Jefferson Boulevard South B nd, Indiana 46601 Re: Tho Pointe at St. Joseph Project Dear Conkmissioners: 1117 Marquette Avenue Suite 200 Minneapolis, Minnesota (612) 332 -5544 VIA FEDERAL EXPRESS In Conn ction with the purchase of land for the above project pursuant to that certain Contract for Sale of Land for Private Develop ent entered into January 16, 1986, as amended (the "Contract for Sale "), Can - American South Bend Limited Partnership ("Can-An") respectfully requests the following action by you: 1. Sub fitted to you with this letter is a Fourth Amendment to Contract for Sale of Land for Private Development between the South Bend Redevelopment Commission and Can -Am pursuant to which the dates for purchase of the land and commencement of�, construction are being extended to r , amend' February 20, 1989, respectively. We have discussed the necessity of these changes with Ms. Kolata and respectfully request that you approve the Fourth Amendment and authorize execution. 2. Sub fitted to you with this letter is a First Amended Partnership Agreement and First Amended Certificate of Limited Partnership pursuant to which the limited partnership interest of Gary Carlson has been divided among the named individuals. This document is being submitted to you pursuant to the notification requirement of Section VIII, Paragraph F of the Contract for Sale. 3. Secl the to i Thi: gran to dat( Mull Jos( ion IX, Paragraph A of the Contract for Sale requires that Commission be notified of financing secured with respect he project and encumbrances to be placed on the land. letter constitutes notice that upon purchase Can -Am will t a mortgage on the land and other mortgageable interests outhwest Bank, N.A., as Trustee, under a Trust Indenture d as of December 1, 1988, to secure payment of the ifamily Housing Revenue Refunding Bonds (The Pointe at St. ph Project) of the City of South Bend, Indiana, in the aat�� Commissioners South Bend Redevelopment Commission Decemb r 16, 1988 Page 2 aggregate principal amount of $11,000.000 and Multifamily Housing Revenue Bonds (The Pointe at St. Joseph Project) of thE City of South Bend, Indiana, in the aggregate principal am cunt of not to exceed $620,000. During the construction of thE project, the proceeds of the bonds will be held by the Trustee and will be disbursed to the construction lender upon su stantial completion of the project. Mellon Bank, N.A., will provide construction financing for the project in the aggregate principal amount of not to exceed $10,675,000, and such financing will be secured by a mortgage on the land and other mortgageable interests. Please indicate on this letter your acknowledgement of this notification and of the status of each of the aforementioned mortgages as "mortgages authorized by the Agreement" pursuant to Section X, Paragraph D. Your prompt consideration is appreciated. Very truly yours, CAN - AMERICAN SOUTH BEND LIMITED PARTNERSHIP By CAN- MERICAN SOUTH BEND CORPORATION By hn Carlson Weber Vice President Acknowl dged this 20th day of December, 1988, o behalf of the City of South Bend Redevel pment Commission Attest: By ay Ni.m sident Roman Piasecki Secretary I!- Commissioners South Bend Redevelopment Commission December 16, 1988 Page 3 STATE O INDIANA ) ) ss. COUNTY F ST. JOSEPH) The foregoing instrument was acknowledged before me this 20`OC day of December, 1988, by F. Jay Nimtz and Roman Piasecki, known to me tD be the President and Secretary, respectively, of the South B nd Redevelopment Commission. IN ITNESS WHEREOF, I hereunto affix my hand and seal this day of December, 1988. Notary 7ublic Residing in St. Joseph County, Indiana My Commission Expires January 7, 1991 limit writi equip appro India arid ACTION OF THE GENERAL PARTNER OF CAN - AMERICAN SOUTH BEND LIMITED PARTNERSHIP 'an- American South Bend Limited Partnership, a Minnesota !d partnership (the "Partnership"), does hereby by this ig take and adopt the following resolutions: THEREAS, the Partnership proposes to acquire, construct and a 202-unit multifamily rental housing project located on imately seven acres of land in the City of South Bend, a and known as The Pointe at St. Joseph (the "Project "); IIEREAS, to provide permanent financing for the Project, the Partn .rship proposes to borrow the proceeds of multifamily hous- ing r venue refunding bonds (The Pointe at St. Joseph Project) to be i.s ued in the aggregate principal amount of $11,000,000 by the City f South Bend, Indiana (the "Issuer "), and the proceeds of the multifamily housing revenue bonds (The Pointe at St. Joseph Project) in the..aggregate principal amount of approximately $620,000 to be issued by the Issuer (the "Permanent Financing "); and HEREAS, the Partnership will obtain construction financing for tte Project from Mellon Bank, N.A. in an aggregate principal amoun not to exceed $10,675,000 (the "Construction Financing "), OW, THEREFORE, BE IT RESOLVED, that there is hereby author- ized and approved the execution and delivery of all instruments and documents as may be required in connection with the above- described financing, including without limitation mortgages on the Project to secure the Construction Financing and the Permanent Financing, all in such form as may be acceptable to the officers of this Corporation authorized below. RESOLVED, FURTHER, that the authorized officer of the gen- eral partner of the Partnership (the "General Partner ") is authorized and empowered to take any and all actions necessary to complete the above - described transaction and to take and perform such other action as it may in its absolute discretion deem nec- essary or appropriate to perform the obligations of this Partnership under any document or instrument executed and deliv- ered in connection with the Construction Financing and the Permanent Financing of the Project, including without limitation mortgages on the Project given to secure said financing. ESOLVED, FURTHER, that all actions heretofore taken by the genes. 1 partner of this Partnership in connection with the actin s required by any document or instrument executed and deliv red in connection with the Construction Financing and the Permanent Financing are hereby authorized, ratified, confirmed and a proved. ESOLVED, FURTHER, that any person dealing with the General Partner in connection with any of the foregoing matters shall be concl sively entitled to rely upon the authority of the General Partner and by its execution of any document, agreement or instrument the same shall be the valid and binding obligation of this artnership enforceable in accordance with its terms. CAN - AMERICAN SOUTH BEND LIMITED PARTNERSHIP By CAN - AMERICAN SOUTH BEND CORPORATION By Its -2-