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HomeMy WebLinkAboutRM 04-06-90April 6, 3 10:00 a.m. Presiding 1. 2. Members News Others: ILM • : @I • 'X11 �1 • ' ICI ;k I 1 • 1200 County -City Building 227 W. Jefferson Boulevard Mr. F. Jay Nimtz South Bend, Indiana 46601 President Mr. F. Jay Nimtz, President Ms. Paula N. Auburn, Vice President Mr. Roman J. Piasecki, Secretary Mr. Michael Donoho sent: Mr. Sandy Combs, Assistant Secretary sel: Ms. Carolyn Pfotenhauer ent Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Cleone Hickey, Economic Dev. Specialist Mr. Larry Koepfle, Economic Dev. Specialist Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Mr. Carter Wolf, Center City Associates Mr. Rich Hill, Baker & Daniels announced that the Executive Session held prior to the meeting would be following adjouzrment of the Regular Meeting. Upon a notion made by Mr. Piasecki, seconded by Ms. Auburn and unanimously carried, the minutes of the Regular Meeting of Friday, March 231 1990, were approved. 0�'U %U::•1WIN ADMIN 1S Business Makielsh P.D.H. South Be Star Tear Abstract Holladay Indalia, Systems, Inc. Art Shop d Tribune orary Services & Title Corporation Corporation Paul -1- 304.61 57.35 2.78 126.53 392.70 145.00 342.12 150.00 South Bend Redevelopment Commission Rescheduled Regular Meeting - April 6, 1990 3. APPROVAL OF CLAIMS (Cont.) ADNIIN l 90 continued... Makielski Art Shop 43.35 Instant Copy 152.00 South Bend Tribune 17.36 Stationers of Michiana, Inc. 97.96 Trav re - Ask Mr. Foster 233.50 Tri News 194.81 United Service 42.50 Equipmew t Services 84.00 National Development Council 695.00 Total AcUin 1990 $ 3,081.57 4. 5. G'1 Upon a nation made by Ms. Auburn, seconded by Mr. Donc ho and unanimously carried, the Commission formally approved the claims submitted March 26 and April 2, 1990 and ordered checks dated March 30 and April 6, 1990 to be released. There wel -e no co mmxnications . There wcjs no old business. Mr. Nimt z announced that agenda items 6.h. and 6.i. will be considered before 6.g. Mrs. Kolata asked the Commission to add item 6.m to the agenda relating to a request from Osco Drug Store. Mr. Nimtz asked if there was any objection to adding item 6.m. to the agenda. There was no objection and the item was adde d. a. -2- $ 3,081.57 COVVISSION FORMALLY �•'''i �� CLAIMS SUBMITTED MARCH 30 AND APRIL 2, 1990 AND CIRD= CHECY,- DATED MARCH 30 AND APRIL 6, 1994 TO BE RELEASED 'IMRE WAS NO OLD BUSINESS South Bend rtdevelqpment Commission Rescheduled ptegular Meeting - April 6, 1990 6. NEW BUSINESS (Cont.) a. cominuea... Mrs. Kolata entered the following into the record: 1) an original Notice of Public Hearing; 2) an affidavit of Carol Smith, Classified Manager of the South Bend Tribune that the Notice of Hearing was published on March 23, 1990; 3) an affidavit of Ellen Hayes, Managing Editor of the Tri- County News that the Notice of Hearing was published on March 23, 1990; 4) a copy of Resolution No. 923, which is the subject of the Public Hearing; 5) as of 0:00 a.m. this morning 0 written remcinstrances were received. Mr. Nimtz asked if there was any cbJection to these items being entered into the record. There was no objection and the items were received into the Mrs. Kolata explained that Resolution No. 923 adds one piece of property to the acquisition list of the South Bend Central Development Area Development Plar. It is a strip of property on which the Rink Riverside walkway will be built, correcting to the existing walkway. The property is being donated to the City by Riverside Printing. It is necessary to apd this to the acquisition list since the Ocmmission will be acquiring it from the Pbedevelopment Authority by lease purchase in order to make the Mr. des. opP was Mr. for des. b. Como mtz asked if there was anyone who d to be heard in support of, or tion to, Resolution No. 923. There i one who desired to be heard. z concluded the Public Hearing ever action the Commission to take. -3- PUBLIC HEARING ON • • • AMENDING E SOLITH :E • CENTRAL •- E AREA DEVELOPNENT South Bend evelcpment Camnmission Rescheduled Ptegular Meeting - April 6, 1990 6. NEW BUSINESS (Cont.) b. continued... C. Upor a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Cormission approved Resolution No. 923. Ms. Cleo Hickey explained that the Contract for property management requires Center City Associates to be responsible for the following: 1) maintenance of the Robertson's building, 2) maintenance of the St. Joseph/Wayne Street Parking Garage, serving as liaison for tenant concerns, 3) the State Theatre Storefronts and Marquee, serving as liaison for tenant concerns, 4) monitoring the pedestrian lights on Midbigan and Jefferson Streets between St. Joseph and Main Streets, reporting malfunationirxj lights to the maintenance crewl and 5) business recruitment/ re tion for the South Bend Central Dev cement Area, as well as providing support for events highlighting the The Ontract provides for copensation to Cen City Associates for these property ement services as follows: the 'ssion will lease to CCA parcels C4 -3 and -30 as well as the State Theatre Storefronts and Marquee for $1.00 per year per property. CCA will, in turn, lease the properties to the tenants and use the income for the described ma' and beautification of the Scuti Bend Central Development Area. CCA will, however, seek written approval from theRedevelcpment staff for any expe-diture exceeding $500.00. CCA 'l1 maintain liability insurance on the properties in the amount of $1,0 0,000. The term of this Contract is frcm April 1, 1990 through March 31, -4- COMMISSION APPROVED RES0=ON NO. 923 South Bend gedevelopwnt Commission Rescheduled Regular Meeting - April 6, 1990 6. NEW BUSINESS (Cont.) c. conttinueca... vim Mrs. Kolata noted that we intended to include in the Contract the lease and ma' tenance of the building where CCA presently has their office. We would also like a provision in the Contract that CCA set aside a percentage of the rent. for larger maintenance items which mii#t arise. She indicated that we would brir g these items to the Commission in the form of an Addendum to the Contract at ci later date. Mr. Piasecki asked if there would be additional cmVensation for the additional work. Mrs. Kolata responded that, the compensation for CCA would be the rental income from the State Theatre Sto efronts. CCA would use that income to v their staff for additional Ms. Auburn asked Mr. Wolf if he was in agreement with the terms of the Contract. Mr. Wolf responded that he was in lasic agreement with the Contract, but, would need to get it approved by the CCA Board of Directors. Mrs. Kolata asked the Commission to table the item until the Contract is approved by the Center City Associates Board of Directors. She also asked that items 6.d. and 6.e. be tabled as they are rel ted items. Mr. Nimtz asked if there was any cbj ion to tabling items 6.c., 6.d., and 6.e. There was no objection and the items were tabled. -5- ITEMS 6.C., 6.D., AND 6.E. WERE TABLED South Bend * �lelcp�nt Commission Rescheduled ar Meeting - April 6, 1990 6. NEW BEJSnTESS (Cont.) f. continued... Mrs. Kolata explained that Resolution No. 924 amends the previously approved lease between the Redevelopment Ccauission and the Redevelopment Authority for the public improvement projects. Mrs. Kolata noted that the bo sale was held on March 27th. The lowest and best bid was received from Jolm, Nuveen and Ccnpany, Inc. at a net inU rest rate of 7.3541% and the Red elopment Authority accepted Nuveen's bid. The amended lease reflects the lower 1 payment schedule based on the bond sal . The semi- annual lease payments rance from a high of $303,500 to a low of $11%500. The highest annual payment wil be $607,000. Resolution No. 924 authorizes the Cmmission to execute both an Addendum to the Lease and approves an Amended and Restated Lease based on the Addendum. Mr. Richard Hill explained some of the more significant changes covered in the Addendum to the Lease. The Addendum defines the word "project" to include all of the construction work to be cmpleted with bond prods, including public ri -of -way. It also reflects the ccutleted title work that has been done on the improvement areas and two refined 1 descriptions. Mrs. Kolata noted that the purpose of the Amended and Restated Lease is to be able to have the Lease, as amended, all in one Mr. Piasedd asked when these figures would be proven accurate. Mrs. Kolata responded that the figures are final. Mr. Piasecki asked, then, if we live by theso numbers. Mr. Hill responded that South Bend Rescheduled 6. NEW BUS: f. con the ama Mr. exp. inc. the Carry pay Upa Mr. Cots red for Are app: the h. cam cent Commission Meeting - April 6, 1990 (Cont.) are the actual rental payment iasecki asked if we don't make those , what happens. Mrs. Kolata ined that if there is not enough tax ment in the account by July 31 of ear before the payment is due, the ssion will levy taxes to make the a motion by Ms. Auburn, seconded by -iasecki and unanimously carried, the ssion approved Resolution No. 924 wig the annual rental on the Lease he South Bend Central Development Public Improvement Project and wing the execution of an Addendum to ease. 0 Mrs. Kolata noted that we had received the Auditor's Certificate regarding the Studebaker Corridor Bond remonstrance indicating that out of 3,528 total signatures, there were 2,826 signatures by of taxable real property in the reddvelonment district of South Bend. Mr. cbj Cer the Dis obj rec i. Com fimtz asked if there was any .lion to entering the Auditor's .ficate regarding the remonstrance to :ity of South Bend Redevelopment •ict Bonds of 1990. 'There was no :tion and the Certificate was ved into the record. -7- '�I • I •- I • � � •ICI • � � �I • ` I� •� x'11 I -�+ • •I • 1 • • :� � -alp � •• ICI South Bend rodevelopment Commission Rescheduled fZegular Meeting - April 6, 1990 6. NEW BUSINESS (Cont.) i. continued. .. Mrs. Kolata noted that on December 29, 1989, the Commission adopted Resolution No. 903, a preliminary bond resolution authorizing the issuance and sale of the Studebaker Corridor bonds in the amount of 4,900,000, giving notice of the petition for the issuance of the bonds. Resclution No. 926 admawledges that a remonstrance was filed against the petition and that remonstrance containing 2,826 signatures of owners of taxable real property within the boundaries of the redevelopwnt district was insufficient in that it contained fewer legally verified signatures than the Detiltion in favor of the bond. Upon a motion by Mr. Donoho, seconded by Mr. iasecki and unanimously carried, the Qxmission approved Resolution No. 926 regarduig the insufficiency of rercnstrance relating to the $4,900,000 Cityf of South Bend Redevelopment District Bonds of 1990. Mr. ef f org Of dil. par Jon Mar hou g. Corm mtz acknowledged the tremendous by the many individuals and .zations responsible for the success s petition drive. They worked ntly and without fanfare. He noted ularly the efforts of Mayor Kernan, nt, and Ann Kolata, as well as et King who put in many volunteer coordinating the petition drive. -8- CONMISSION APPROVED RES0=ON NO. 926 REGARDING INSUFTTCIENCY OYM40NSTRANCE PMATING TO THE $4,900,000 CITY OF SOUIH BEND • �DEVEILOPNEW DISTRICT BONDS OF 1990 South Bend F Rescheduled mnent Cmimi.ssion Meeting - April 6, 1990 6. NEW BUSM 5 (Cont.) • r • �llj �1i� t�� Mrs. I Kolata read a letter frain Mayor Kexrtin into the record: April 6, 1990 Mr. F. Jay Nimtz, Esq. President Souti Bend Redevelopment Commission 1200 County-City Building Souti Bend, Indiana 46601 Dears Jay: Presented to the Redevelopment Commission todaf for its approval is the final bond resolution for the Studebaker Corridor Bond Issue. The recently received Order of Approval of the State Tax Board makes it p ssible to now take this final action on t e bond issue and begin the process of r vitalizing the Studebaker Corridor Area. This resolution includes the refinement of the preliminary structuring of the bond issue that has achieved two significant goals-- minimizing the impact on the real property tax rate and reducing interest costs. In setting the repayment schedule for the bonds, we have considered the repayment schedule of other general obligation financings of the City. Reduced principle amounts will be paid on the bond until those obligations are paid off. At that time, principle payments will be accelerated. In addition to minimizing the impact on our property tax rate, this repayment will permit an earlier payoff of the Studebaker Corridor Bond, saving over $900,000 of interest when compared to the preliminary bond payoff plan. We anticipate that this repa ment plan will be viewed favorably by t e rating agencies. South Bend evelopiient Commission Rescheduled Pegular Meeting - April 6, 1990 6. NEW BUS (Cont.) g. contlinuecl... The doption of this resolution today by the ommission will permit bonds to be sold on May 15 with funds being on hand by J ne 1. I wait to take this opportunity to thank you 3nd the members of the Redevelopment Commission for your leadership and persistence. Without your support and that of all of the citizens of this comm nity who have participated in this effo t, we would not be taking this impo tant step today for the future of our ommunity. Sincerely, Jose�h E. Kernan Mayo Mrs. Kolata distributed copies of various paynent schedules prepared by Springsted and considered by staff, the City Controller, and bond counsel. The schedules were prepared by Springsted Inc., our financial consultant for the bond. They looked at a number of different schedules and are recommending a fifteen year schedule included in Resolution No. 925. This schedule has a smaller effect on the taxpayer and saves $90 ,000 in interest over the life of the bo aver the 20 year schedule. Mr. Hill pointed out that Resolution No. 925 rovides for standard items relating to tie form of a bond, including au rization for publication for the bond sale. Mr. rter asked what the estimated impa on the tax payer would be. Mrs. Kola responded that, before t, we had estimated that it woul I cost the taxpayer between ten and elevim cents per one hundred dollars of value. Mrs. Kolata also noted -10- South Bend: Rescheduled 6. NEW BUS: g. con mnent Commission Meeting - April 6, 1990 (Cont.) that the first year we will levy for three payments rather than two, which will allow us to not capitalize interest. This will result in a heavier tax inpact the first year. Upon a motion by Mr. Donoho, seconded by Ms. Auburn and unanimously carried, the Comission approved Resolution No. 925, a final bond resolution of the South Bend Redevelopment Commission authorizing the issuance of Redevelopment District Bonds for the purpose of raising money for property acquisition and redevelopment in the Studebaker Corridor Development Area. Mr. Nimtz acknowledged the tremendous editorial support of the South Bend Trikune during the petition drive for the Studebaker Corridor project. j . Como fill DEW Cen Mrs E9 is 1 tows the for Mr. k. Kolata noted that parcels E9 -8A and 1 are the properties the Commission fling to Karl Schram for the ouse project. We have not closed on roperty and they would like to file ax abatement. Since the owners must the tax abatement petition, we are g the ccmmiission to file on their f. We expect to close within the a motion by Ms. Auburn, seconded by liasecki and unanimously carried, the ssion authorized its officers to the tax abatement petition for 1s E9 -8A and E9 -8B in the South Bend al Development Area. -11- • 1 I • "' • 011 • (ORILL • -:1 N • • 1D "Wil �. • • 1 . .. • I • • � • • 1:1 01""10,110169 I • �I: � ��1' ••' • K•' .'!1 • • 1.91 Woo •1D1 MIN I �1 • • 1:1 South Bend Pedevelopment Commission Rescheduled Regular Meeting - April 6, 1990 6. NEW BUSAMS (Cont.) g. con4i.nuect... Mrs. Kolata noted that we do not have anyone on the City staff who has the ability to write the demolition specifications for the Transwestern BUD ding. She noted that the Notice of ReqLest specifically states that the writer of the bid specifications will not be dligible to bid on the demolition work. This may cause some difficulty in getting someone to write the specs, since most, cmpanies want to do the demolition work. Therefore, we recommend publishing the notice in the Chicago Tribune and Indianapolis Star, as well as the South Bend.Tribune and Tri- County News. Mr. Doncho asked why we were making that stipulation. Mrs. Kolata responded that that, would give them an inside track on the demolition bid. Ms. Pfotenhauer noted that there is a state statute that p its the project manager from doing the desiqn work. Mr. Donoho stated it shouldn't make any difference if it is a competitive bid, except that it might allow them to bid lower because they could write off the cost of writing the specs if they are the su ful bidder, so the total cost would be less. Mr. Dondho also stated that he would like to see local firms have first chance at the opportunity and this restriction miqbt rule that out. Mrs. Kolata suggested that the Commission could authorize the staff to seek proposals. Ms. Pfotenhauer could check further into the statute and if it acceptable to allow the writer of the to bid on the demolition, we would readvertise for bids. Mr. Poncho asked how the other Condssioners felt about the issue. Ms. -12- South Bend rodevelopment Cmaission Rescheduled egular Meeting - April 6, 1990 6. NEW BUSVTFSS (Cont.) g. conginuea... n responded that she understood Mr. Lo's point, but wondered if there be enough latitude in writing the so that the writer could guarantee he would be the successful bidder for Mrs. Kolata responded that it is a large scale project and has some environmental issues that must be dealt with. Ms. uburn asked if the statute would all the writer of specs to be the proj manager. Ms. Pfotenhauer nded that it would not. Mr. the Neti-- 5:OC alsc Chic Apri 1. Corm for Mrs. an the we F Cory but We d adve only a motion by Mr. Donoho, seconded by liasecki and unanimously carried, the .ssion authorized publication of the st for proposals as prepared by the ' for writing demolition .fications for all or part of the ;western Building with publication ; of April 6 and April 13, 1990 in youth Bend Tribune and the Tri- County with proposals to be received by p.m. on April 25th. The staff was authorized to advertise in the ;go Tribune and Indianapolis Star on . 8, 1990. Kolata noted that we will need to do wi.ronmental assessment of primarily :mnercial and industrial sites that Lan to acquire in the Studebaker Ldor. The assessment would include, zot be limited to, a historical rds search and a site investigation. :)n't feel that we will need to rtise outside of South Bend, so have sent the notice to the South Bend me and the Tri- County News. -13- MMSSION AUTHORIZED THE STAFF TO SEEK PROPOSALS FOR WRITING DEMOLITION SPECIFICATIONS FOR ALL OR PART OF THE TRANSWESTERN BUILDING South Bend F Rescheduled 6. NEW BUSI 1. cont Upor. Mr. Coamr publ envi Stud Trix 6 ar. prcr- 199C m. Reu Mrs. rec:e Oscc disc to x thei thei The Mr. cam as Dru 7. PROGRESI Mrs. Ko: year wi Corrido hand wa. both of anent Ccemmission Meeting - April 6, 1990 (Cont.) a motion by Ms. Auburn, seconded by liasecki and unanimously carried, the . ssion authorized the staff to .sh a request for proposals for bnmental assessment for part of the baker Corridor in the South Bend ne and the Tri- County News on April l April 13, 1990 with receipt of sals to be 5:00 p.m. on April 25, Kolata noted that the Commission had ved a request from the owners of Drugs to put a six foot satellite on the roof of the Osco Drug Store place telephone lines which connect in -store computer systems with offices and distribution facility. owners will make any necessary des and/or repairs to the roof and mount the satellite in a position will protect the aesthetics of the Tina. a motion by Ms. Auburn, seconded by onoho and unanimously carried, the ssion authorized the installation of ellite dish on the roof of the Osco Store. to noted that we expect a very good Lthe TIF bond and the Studebaker Bond. She acknowledged the hours of :by the staff and our consultants on •• • •- VAIN W 11119160 0 • 24 01 •�-• ••. • • COMMISSION AUTHORIZED THE INSTALTA T ION OF A SATF'•T T TE DISH ON THE ROOF OF THE OSLO DRUG STORE The next meeting of the Caamnission is the NEXT COMMISSION MEETING Rescheduled Regular Meeting of April 20, 1990 at 10:00 a.m. -14- South Bend evelopment Commission Rescheduled Regular Meeting - April 6, 1990 WF There being no further business to come before the Ccamnission, Ms. Auburn made a motion that the meeting be adjourned. Mr. Donoho seconded the motion and the Ming was adjourned at 11:25 a.m. President -15- FTI ANN - e i iv ZVQ Cam" Ann . Kolata, Director