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HomeMy WebLinkAboutRM 03-27-92SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING March 27, 1192 10:00 A. M. Presiding O ficer: Ms. Paula N. Auburn President 1. 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Members Present: Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice President Mr. Michael Doncho, Secretary Mr. Philip J. Faccenda, Assistant Secretary Ms. Charlotte Huddleston Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Ms. Cleone Hickey, Economic Dev. Specialist Mr. K.C. Pocius, Economic Dev. Specialist Bureau of Housing Staff: Mr. Ted Leverman, Assistant Director News Media: Mr. Don Porter, South Bend Tribune Mr. Thom Howell, U -93 Others: Mr. Carter Wolf, Center City Associates Ms. Auburn announced that the Executive Session held prior to the meeting would be continued following adjournment of the Regular Meeting. 2. APPROVAL OF MINUTES Upon a inotion made by Mr. Faccenda, seconded COMMISSION APPROVED THE MINUTES by Mr. Piasecki, and unanimously carried, the OF THE REGULAR MEETING OF FRIDAY, minutes of the Regular Meeting of Friday, MARCH 13, 1992 March 1 , 1992, were approved. M Cleo Hickey General Fund South Bend Tribune Tri -County News Holladay Corporation South B nd Drafting $ 114.78 804.69 15.41 14.59 375.00 50.00 TOTAL $ 1,374.47 -1- South Bend I Regular Mee 3 4 0 edevelopment Commission ing - March 27, 1992 (Cont.) Warner & Sons Barbara J. Pallatin Peirce & Associates Lang Fe ney & Associates Doug Carpenter Abstracz & Title Corp. St. Jos ph Title Co. Tri -Cou ty News Torok E cavating TOTAL Upon a otion made by Ms. Huddleston, seconde by Mr. Donoho and unanimously carried the Commission formally approved the claims Lbmitted March 27, 1992 for payment. There w6re no communications. a. witnarawal ox xesoluuion No. luL4. Mrs Kolata noted that Resolution No. 1024, amending the Studebaker Corridor Development Area Development Plan was submitted last fall. The resolution added certain properties to the acquisition list. The Commission held the Public Hearing on November 12, 1991. The result of the Public Hearing was that the Commission did not act on the resolution. We wish to withdraw the resolution at this time as we are still dis ussing this with the property owner, Cal in Murdock. Upo a motion by Mr. Piasecki, seconded by Ms. Huddleston and unanimously carried, the Commission withdrew Resolution No. 1024. -2- $ 25,436.25 31,807.37 130.00 350.00 250.00 200.00 150.00 116.27 1,908.75 $ 60,348.64 $_61,753.11 COMMISSION FORMALLY APPROVED CLAIMS SUBMITTED MARCH 27, 1992 FOR PAYMENT THERE WERE NO COMMUNICATIONS COMMISSION WITHDREW RESOLUTION NO. 1024 South Bend edevelopment Commission Regular Mee ing - March 27, 1992 C^ Mrs. Kolata requested permission to add item 6.k. to the agen a. There was no objection and the item was ad ed. r� Mrs. Kolata noted that Resolution No. 1042 appropriates $240,000 of tax increment finance revenue in the South Benl Central Development Area that will be ased for two primary purposes: to ac ire the parking lot next to Senor Kel ys and to construct a walkway along the river bank next to Madison Center. Mrs. Kolata entered into the record the following items related to the public hearing: 1) an affidavit from Carol Smith that the Notice of Hearing was published in the South Bend Tribune on March 13, 1992; 2) an affidavit of Che rie Jolly that the Notice of Hearing was published in the Tri- County News on March 13, 1992; and 3) a copy of Resolution No. 1042. Ms. Auburn asked if there was any obj ction to the items being entered into the public record. There was no obj ction and the items were so entered. Mrs. Kolata noted that following approval by the Commission documents will be submitted to the County Auditor and then to the State Tax Board for review and a hearing. Ms. Auburn opened the Public Hearing on Res lution No. 1042. There was no one who wished to be heard. Ms. Auburn clo ed the Public Hearing. -3- PUBLIC HEARING ON RESOLUTION NO. 1042 South Bend Regular Mee 6. NEW BUS b. Co Res Upo by car Res App Sou c. Co Cl elopment Commission - March 27, 1992 a motion by Mr. Piasecki, seconded s. Huddleston, and unanimously ied, the Commission approved lution No. 1042, a Supplemental opriation Resolution of the City of h Bend Redevelopment Commission. Mrs. Kolata explained that Barnes and Thornburg has submitted a proposal to serve as Bond Counsel for a fee not to exc ed $20,000, based on their actual costs. The City Attorney has sent the Commission a letter recommending accepting the proposal. Mrs. Kolata noted that Commissioner Faccenda serves as 'Of Counsel" to Barnes and Thornburg, whi h means he is not a general partner in he firm, but serves in a contractual relationship. He receives a fixed rate of pay for his services and will not profit in any way from this engagement. His relationship does not constitute a con lict of interest. Upoi a motion by Mr. Doncho, seconded by Ms. Huddleston and unanimously carried, the Commission accepted the proposal from Bar es and Thornburg to serve as Bond Cou sel for the refinancing of the 1985, 198 , and 1988 Tax Increment Revenue Bon s. Mr. Faccenda abstained from the vot . .MR COMMISSION APPROVED RESOLUTION NO. 1042 A SUPPLEMENTAL APPROPRIATION RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION COMMISSION ACCEPTED THE PROPOSAL FROM BARNES AND THORNBURG TO SERVE AS BOND COUNSEL FOR THE REFINANCING OF THE 1985, 1986, AND 1988 TAX INCREMENT REVENUE BONDS South Bend Regular Mee 6. n e. elopment Commission - March 27, 1992 Mrs. Kolata noted that the Partial Release of Mortgage has some errors in it and will be rewritten. However, we would like to have the Commission authorize the Release of Mortgage instead of approving the document itself. Mr. Leverman explained that when the original mortgage was written, the legal description included more property than the mortgage was for. This Partial Release of Mortgage has been deemed the bes way to correct the error. Upoa a motion by Ms. Huddleston, seconded COMMISSION APPROVED THE PARTIAL by r. Faccenda and unanimously carried, RELEASE OF MORTGAGE IN CONNECTION the Commission approved the Partial WITH THE RENTAL REHAB PROGRAM FOR Release of Mortgage in connection with PROPERTY LOCATED AT 717 N. BLAINE the Rental Rehab Program for property loc ted at 717 N. Blaine. Mrs. Kolata explained that the Commission previously conveyed a number Monroe Park properties to the Board of Public Works which then conveyed them to the Housing Development Corporation for reh bilitation. The HDC rehabbed these properties with funds they had. The properties at 611 and 701 E. South Street wilL be rehabilitated from bond funds used to buy the property. We'd like to ask the Board of Works to act as our age t to bid the work out, as well as ove see the rehab. Ms. Auburn asked if the HDC would be able to id on the work. Mrs. Kolata res onded that they could and probably -5- South Bend edevelopment Commission Regular Mee ing - March 27, 1992 6. f. Upon a motion by Mr. Donoho, seconded by COMMISSION REQUESTED THE BOARD OF Mr. Faccenda and unanimously carried, the PUBLIC WORKS TO ACT AS ITS AGENT Commission requested the Board of Public FOR THE REHABILITATION OF Works to act as its agent for the PROPERTIES LOCATED AT 611 AND 701 rehabilitation of properties located at E. SOUTH STREET 6111and 701 E. South Street. Mrs. Kolata noted that the lease is for the Palais Royale building. Under the proposal, the Redevelopment Authority wou d issue Lease Rental Revenue Bonds with which to buy the building and the Comnission would lease the building for a per'od of time. This Lease is expected to have some modifications because the int rest rate used to figure the payments is stimated. The payments should be lesg when the interest rate is firm bec use this estimate is conservative. Acc rding to this document, the sem'- annual payments would each be $11),000 for no more than 13 years. We int nd to limit the term to 12 years, whi h is the term of the City's existing lea 5e on the property. The next step after approving the Proposed Lease is to hold a Public Hearing regarding the lease. Resolution No. 1045 also sets the date and time for Public Hearing as 10:00 a.m. April 24, 199t. Mrs whi iss ant Kolata noted that the size of the is approximately $1.41 million, includes the purchase price, nce costs, and a bond discount. We ipate that the Redevelopment IN South Bend Regular Mee 6. NEW BUS elopment Commission - March 27, 1992 f. continued... Aut ority will send a purchase offer for the building within the next two to three wee S. The price is not set yet, but wil be under $1.3 million. Mrs. Kolata noted that this bond will have G.O. back -up in order to get a lower interest rate on the bond, but we expect to use tax increment for the lease payinents and do not intend to use the G.O. backup. Mrs. Kolata noted that we expect to sell the bond in late July. The Redevelopment Authority will reach an agreement with the owners and the owners will place a deed in escrow until the bond proceeds are available. Mr. Piasecki asked if bond proceeds would alsD be used for rehab of the building. Mrs. Kolata responded that they would not be. Community fundraising in the private sec or is proceeding to fund the rehab. Mrs. Kolata noted that when the Palais Roy le is renovated, the Ballroom will be ren ed out for private occasions. There wilL be a kitchen for catering and a sma 1 stage. The mezzanine will have off'ce space for rent. The first floor wil continue to be rented by Office Int riors. Ms. Huddleston asked if the renovated bal room will compete with Century Cen er. Mrs. Kolata responded that Cen ury Center tries to hold its space ope for large conventions and doesn't like to book weddings, etc., far in advance because having some space unavailable could ruin their chances of get zing a large convention. It could be competitive, but could also relieve Cen ury Center of some of that type of dem nd. The Palais Ballroom isn't as lar a as some of the Century Center or Mar iott space. It's a different kind of -7- South Bend edevelopment Commission Regular Mee ing - March 27, 1992 6 R a inued... Upon a motion by Ms. Huddleston, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1045 approving a Proposed Lease between the South Bend Redevelopment Aut ority and the South Bend Red velopment Commission for certain land and public improvements, setting a public hearing on the Proposed Lease pursuant to I.C. 36 -7 -14 -25.2, and authorizing publication of notice of the public heairing. Mrs. Kolata explained that Evensen Dodge has submitted a proposal for: 1) a tax increment revenue and cash flow study; 2) han ling the financing of the Palais Roy le bond issue: and 3) the refunding of he lease rental revenue bonds of 1988 (St Joseph /Wayne Garage) to take adv ntage of lower interest rates. Mrs Kolata noted that the compensation for the tax revenue study is a flat amount of $12,500 plus reimbursable expenses. However, if we go forward with the St. Joseph /Wayne Garage refinancing, we will receive a $9,000 credit from the $12,500 fee. The fee for the Palais Royale would be $15,000 and the fee for the St. Joseph /Wayne garage would be based on the size of the bond, in the ran 4e of $27,000. Mrs Kolata noted that the proposal includes providing us with a hard copy of all calculations, assumptions, and reports that they have created and used to provide the analysis. Our intention is o try to build a computer program of our own through the City Controller's of f ce . COMMISSION APPROVED RESOLUTION NO. 1045 APPROVING A PROPOSED LEASE BETWEEN THE SOUTH BEND REDEVELOPMENT AUTHORITY AND THE SOUTH BEND REDEVELOPMENT COMMISSION FOR CERTAIN LAND AND PUBLIC IMPROVEMENTS, SETTING A PUBLIC HEARING ON THE PROPOSED LEASE PURSUANT TO I.C. 36 -7 -14 -25.2, AND AUTHORIZING PUBLICATION OF NOTICE OF THE PUBLIC HEARING South Bend Regular Mee 6. NEW BUS g. con h. elopment Commission - March 27, 1992 Upon a motion by Ms. Huddleston, seconded by Mr. Piasecki and unanimously carried, the Commission accepted the proposal from Eve sen Dodge related to financial adv'sor services in the South Bend Cen ral Development Area. Mrs. Kolata noted that these spe ifications are for removing environmental conditions for the Avanti Bui ding. We have proposals from Cole Ass ciates and from ATEC Environmental Con ultants. ATEC's proposal is for an amo nt not to exceed $4,950 unless unew,pected conditions are encountered. Col Associates' proposal is for $5,640 plug reimbursables of approximately $60). They will write the specifications whi h will be used for putting out for bid the work of removing the environmental conditions. The staff rec mmends accepting the bid of Cole Ass ciates since they are a local firm. Mrs. Kolata noted that the City's Dep rtment of Engineering will write the dem lition specifications for the Avanti Bui ding itself, but that assumes the pri r removal of environmental conditions. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission accepted the proposal from Cole Associates for writing spe ifications for removal of environmental conditions in the Stu ebaker Corridor Development Area. COMMISSION ACCEPTED THE PROPOSAL FROM EVENSEN DODGE RELATED TO FINANCIAL ADVISOR SERVICES IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA COMMISSION ACCEPTED THE PROPOSAL FROM COLE ASSOCIATES FOR WRITING SPECIFICATIONS FOR REMOVAL OF ENVIRONMENTAL CONDITIONS IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend edevelopment Commission Regular Mee ing - March 27, 1992 6. i. J - Mrs. Kolata explained that Resolution No. 1044 adds certain properties to the ac isition list of the Studebaker Cor idor Development Plan. Mr. Pocius explained that two properties, com rised of four lots, in the 1200 block of 3outh Michigan are being added to the acqaisition list. Three of the lots are occ pied by Baird Motor Company, a used car company, and the other lot is vacant. We have had the title and survey wor< done on these properties. Approval of this resolution will allow us to move ahead with acquisition. Upon a motion by Mr. Donoho, seconded by Mr. Piasecki and unanimously carried, the Commission accepted Resolution No. 1044 for filing and set 10:00 a.m., April 10, 199 for the Public Hearing on Resolution No. 1044. Mrs. Kolata noted that we have received a counter offer in the amount of $21,250 plus taxes estimated to be $325 for Parcel 8 -19. The owner of the property is James Freeman. The staff recommends acc pting the counter offer. Upon a motion by Ms. Huddleston, seconded by Mr. Faccenda and unanimously carried, the Commission accepted the counter offer of 21,250 plus current taxes from James Fre mont for Parcel 8 -19 in the Stu ebaker Corridor Development Area. -10- COMMISSION ACCEPTED RESOLUTION NO. 1044 FOR FILING AND SET 10:00 A.M., APRIL 10, 1992 FOR THE PUBLIC HEARING ON RESOLUTION NO. 1044 COMMISSION ACCEPTED THE COUNTER OFFER OF $21,250 PLUS CURRENT TAXES FROM JAMES FREEMAN FOR PARCEL 8 -19 IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA South Bend Regular Mee 6. NEW BUS k. Com 7. 8. elopment Commission - March 27, 1992 Mrs. Kolata explained that we intend to refinance the 1985, 1986, and 1988 bon s. There will be a Public Hearing on a r solution authorizing the refunding on April 24, 1992 at 10:00 a.m. Upon a motion by Mr. Faccenda, seconded by Mr. Donoho and unanimously carried, the Commission authorized publication of Legal Notice regarding the refunding of the 1985, 1986, and 1988 tax increment refinance bonds and set 10:00 a.m., April 24, 1992 for a Public Hearing on that ref ndina. Mrs. Ko ata reported that the South Bend Tribune brought to the Design Review Committ a their plans for both the new buildina where the Colfax Theater stood, as well as plans for the new printing press buildin . It will be a very impressive buildin and important contribution to the downto Wh. Mrs. Ko ata noted that Hedy Robinson has just complet d the Real Estate course at IUSB and will be taking the test for her license soon. The nex Regular Meeting of the Redevelopment Commission is scheduled for April 10, 1992 at 10:00 a.m. -11- COMMISSION AUTHORIZED PUBLICATION OF LEGAL NOTICE REGARDING THE REFUNDING OF THE 1985, 1986 AND 1988 TAX INCREMENT FINANCE BONDS AND SET 10:00 A.M., APRIL 24, 1992 FOR A PUBLIC HEARING ON THAT REFUNDING PROGRESS REPORTS NEXT COMMISSION MEETING South Bend Regular Mee 9 elopment Commission - March 27, 1992 There being no further business to come before the Redevelopment Commission, Mr. Faccenda made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 10:46 a.m. Paula N. Auburn, President -12- ADJOURNMENT �� " (��z /" Ann E. Kolata, 6irecitor