HomeMy WebLinkAboutSM 08-31-90August 31, 990
10:00 a.m.
Presiding O fic
• i •I • ' �I• �i • --T
ICI i• 1 •
. Mr. F. Jay Nimtz
President
1. ROLL CALL
Members Present:
Members Absent:
Legal Counsel:
Redevel rment Staff:
News Mec Lia:
Others:
2. NEW BUS c
a. Com Liss
1200 County -City Building
227 W. Jefferson Boulevard
South Bend, Indiana 46601
Mr. F. Jay Nimtz, President
Mr. Roman J. Piasecki, Secretary
Mr. Michael Donoho
Ms. Paula N. Auburn, Vice President
Mr. Sandy Combs, Assistant Secretary
Ms. Carolyn Pfotenhauer
Mrs. Ann Kolata, Director
Mrs. Cheryl Phipps, Office Manager
Mrs. Esther Deak, Secretary
Mr. Don Porter, South Bend Tribune
Mr. Bill Rmuinski, Michiana Business Journal
Mr. Thom Howell, U -93
Mr. Richard Hill, Baker & Daniels
Mrs Kolata explained that Resolution No.
957 authorizes a number of activities
between the Commission and the
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South Bend Pedevelopment Commission
Special Meeting - August 31, 1990
2. NEW BUSINESS (Cont.)
a. continued...
velopment Authority. The projects
are identified in Exhibit B are the
eats that would be leased by the
ission from the Redevelopment
ority and financed by a
e /Purchase bond issued by the
ority.
The projects are in the Airport Economic
Development Area. There are four major
activities which are being proposed.
Mrs. Kolata explained the four projects:
1) inancing the construction of internal
roa in the Airport Economic Development
Ar to open up land for the
bus' s /corporate /office area. The
pr is to construct two loop roads
in the area and to extend Mayflower
Road south of Old Cleveland Road for an
estimated $4.2 million.
2) cquisition of approximately 10
par is of land. Acquisition and
relocation is estimated to cost between
$1. million and $1.6 million.
3) Extension of Viridian Drive and
inpf,avements to Viridian Lake. We
pro to extend Viridian Drive
app ximately 200 feet. Viridian Lake is
a m m made drainage lake which was not
coq)leted by the Industrial Foundation.
The cost of the road extension is
$160,000 and the improvements to the lake
are estimated to cost $215,000. These
improvements will open up more lots for
bus ess development.
4) ion of water, sewer and
corm,truction of a sewage lift station at
Brick and New Cleveland roads. Penz
R ty owns about 70 acres north of New
Cleveland at Brick which they intend to
dev lop into a light industrial park.
The cost of these improvements is
estimated at $150,000. We intend to
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TI
South Bend edevelopment Coamission
Special Au ority - August 31, 1990
2. NEW WSMS (Cont.)
a. continued...'
y to the state for a grant of $75,000
Lrd the cost of the improvements.
Mrs. Kolata noted that this is the first
action the Commission is taking on the
bo issue. It may not be possible to do
all of these projects with the money
available in the bond. If not, some will
be t or altered, but it is necessary to
have them described in the Lease if they
are being considered. Over the next
several months we will be refining cost
estimates to determine how much can be
Mrs. Kolata noted that the Lease contains
1 descriptions for all of the roads
we hope to get state funding for. Even
if a get state funding for construction,
we ill need to pay for engineering costs
whi was included in the $950,000 bond
iss ie. In order to pay off that bond
wi the larger bond, the Lease must
inc Lude the descriptions of those roads.
Mrs Kolata noted that this is a lease
pur financing. The Redevelopment
Aut iority will need to own all of the
pro Derty that money is being spent on.
The term of the Lease is "not to exceed
22 ears" to allow some flexibility. We
the term of the Lease to be about
20 ears. The maximum semi- annual rental
ins lment is $900,000. The law
reqLires that a maximum lease payment be
established. The lease payments begin
whem the project is cc npleted, or January
28, 1992, whichever is later. According
to the payment schedule listed in the
the payments are graduated. The
firot lease payment is estimated to be
$141,400.
Mrs Kolata noted that approval of
Resolution No. 957 includes accepting the
plans and specifications for the proposed
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South Bend
Special Meg
2. NEW BUS
a. coy
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elopment Commission
- August 31, 1990
(Cont.)
ects; approving the proposed Lease;
duling a Public Hearing on the Lease
September 14th at 10:00 a.m.; and
orizing publication of the Notice of
is Hearing for September 14th at
0 a.m.
Howell asked what the size of the
I is. Mrs. Kolata responded that
e is no total for the bond. Instead
total, we are setting a maxim m
- annual lease payment. We will make
lease payments from tax increment.
rill be working closely with our
uncial advisor to determine what size
pond can be supported with tax
ement. The projects listed today
1 $6.3 million. We don't expect to
ble to fund all of those. It depends
Low far we can make the increment go
how the bond issue is structured.
a motion by Mr. Donoho, seconded by
Piasecki and unanimously carried, the
ission adopted Resolution No. 957
owing a proposed Lease between the
h Bend Redevelopment Authority and
South Bend Redevelopment Commission
certain land and public improvements,
oving preliminary plans,
ifications and cost estimates for the
ects, setting a Public Hearing on the
osed Lease pursuant to IC
-14 -25.2, and authorizing publication
otice of the Public Hearing.
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COMMISSION ADOPTED RESOLUTION NO.
957 APPROVING A PROPOSED LEASE
BETWEEN THE SOUTH BEND
REDEVELOPMENT AUTHORITY AND THE
SOUTH BEND REDEVELOPMENT'
OOMMISSION FOR CERTAIN LAND AND
PUBLIC IMPROVEMENTS, APPROVING
PRELIMINARY PLANS, SPECIFICATIONS
AND COST ESTIMATES FOR THE
PROTECTS, SETTING A PUBLIC
HEARING ON THE PROPOSED LEASE
PURSUANT TO IC 36 -7 -14 -25.2, AND
AUTHORIZING PUBLICATION OF NOTICE
OF THE PUBLIC HEARING
South Bend evelopment Commission
Special Mee ing - August 31, 1990
2. NEW BUSYNESS (Cont.)
b. continued...
Mrs Kolata explained that Resolution
No. 958 is the Final Bond Resolution of
the $950,000 Tax Increment Revenue Bond.
Since the Commission action approving the
boni, it has received approval from the
Sta Tax Board and from the Local
Hearing Officer for the additional
app priation of proceeds plus interest.
We are ready to proceed to closing.
Mrs Kolata noted that this bond differs
fron previous bond issues in that it will
be FL negotiated sale, not a public sale.
The purchaser will be Raffensperger
Hu es at a rate of less than 8 %. The
exa rate will be determined within one
wee,,. Raffensperger Hughes is completing
the' negotiations with the party who
will be buying it from them.
The proceeds of this bond will be used to
pay for preliminary costs in the Airport
Economic Development Area, primarily the
design of the internal roads, the Toll
Road interchange, the improvements to Old
Cleveland Road, and to Mayflower Road.
The bonds may be redeemed at any time
with no penalty. That will allow us to
pay off all or a portion of them with the
larger lease purchase bond if there are
enotigh proceeds in the larger bond to do
that. Whatever is not paid off before
August 1, 1996, will be paid off at that
ti m. It will be paid entirely from tax
increment. The coverage is 1.25. The
Puntlase Agreement between the Commission
and Raffensperger Hughes contains some
blaziks for the actual interest rate and
the closing date. Resolution No. 958
autliorizes execution of the Purchase
Agreement at the yet - to-be- determined
ra . We expect closing to take place
the week of September 17th.
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South Bend edevelcpment Commdssion
Special Meeting - August 31, 1990
2. NEW MUSTINESS (cont.)
0,
b. continued...
Kolata explained that a negotiated
seemed more appropriate for this
since there is not much market for a
that can be redeemed without penalty
30 days notice. Raffensperrger
s has several buyers who are
ested, but has not completed
Mr. Piasecki asked how an interest rate
is ived at without competition. Mrs.
Kol to responded that it becarnes a series
of negotiations. Current bonds are
sel ing at a rate of about 7.5 %. We have
set a cap of 8 %. Raffensperger Hughes
wil L be the negotiator between the end
buy Br and the Commission.
Upo a motion by Mr. Donoho, seconded by
Mr. Piasecki and unanimously carried, the
com 'ssion approved Resolution No. 958, a
Fin Ll Bond Resolution of the City of
Sou Bend Redevelopment Commission
aut lorizing the issuance of the City of
Sou Bend Redevelopment District Tax
Inc'ement Revenue Bonds of 1990 for the
of raising money for property
acq Lisition and redevelopment in the
AirPort Economic Development Area
All tion Area No. 1..
Mrs. Ko:
complete
bond. i
SeptembE
will be.
R •�
The next
Commissi
1990 at
eta noted that the next step is to
negotiations for the sale of this
hope to be able to report at the
14th meeting what the interest rate
Regular Meeting of the Redevelopment
n is scheduled for September 14,
0:00 a.m.
cm
COMMISSION APPROVED RESOLUTION
NO. 958, A FINAL BOND RESOLUTION
OF THE CITY OF SOUTH BEND
REDEVEL(JFI= COMMISSION
AUTHORIZING THE ISSUANCE OF THE
CITY OF SOUTH BEND REDEVELOPMENT
DISTRICT TAX INCR ED,= REVENUE
BONDS OF 1990 FOR THE PURPOSE OF
RAISING M3NEY FOR PROPERTY
ACQUISITION AND REDEVELOPMENT IN
THE AIRPORT ECONOMIC DEVELOPMENT
AREA ALLOCATION AREA NO. 1
NEXT CXMUSSION MEETING
South Bend ?development Cc mnission
Special Mee ing - August 31, 1990
5.
There bAng no further business to come ADJOURNMENT
before the Camnission, Mr. Piasecki made a
motion that the meeting be adjourned. Mr.
Donoho seconded the motion and the meeting
was adi urned at 10:34 a.m.
F.
z �-
Pr&ident Ann E. Kolata, Director
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