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Home My WebLink AboutSM 01-04-93�J SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING January 4, 1993 10:00 a.m. Presiding Officer: Mr. Roman Piasecki Vice- President 1. ROLL CALL 1200 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 Members Present: Mr. Roman J. Piasecki, Vice President Mr. Theo F. Sharp, Secretary Mr. Michael Donoho Members Absent: Ms. Paula N. Auburn, President Mr. Philip J. Faccenda Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. K. C. Pocius, Economic Dev. Specialist News Media: Others: 2. APPROVAL OF MINUTES Mr. Thom Howell, U -93 Mr. Don Porter, South Bend Tribune Mr. Jim DeFreeuw Mr. Randy Rompola, Baker & Daniels a. Aunroval of the Minutes of the Regular Meeting _of December 4, 1992. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved the Minutes of the Regular Meeting of December 4, 1992. se COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF DECEMBER 4, 1992 H South Bend Redevelopment Commission Special Meeting - January 4, 1993 3. APPROVAL OF CLAIMS There were no Claims. 4. COMMUNICATIONS There were no Communications. 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS a. Receipt of bids for Lots 5, 11, 15, and 18b (north portion ) in the Airport Economic Development Area. (Toll Road Industrial Park) Mrs. Kolata reported that no bids were received on these parcels by the 10:00 a.m. deadline. b. Receipt of bids for Disposition Parcels 1. 9. 11, 30, 5. 7. 16, 19, 23, 8, 15. and 18 in the Studebaker Corridor Development Area. Mrs. Kolata reported that we have received two bids for these parcels. One bid was from Devlon Properties, an Indiana Partnership for parcel 11. The bid included a commitment check in the amount of $88,500, subject to an attached conditions statement, Exhibit A. Devlin Properties is a sales, service, warehouse and distribution facility for Alcon Building Products, Inc. Exhibit A states that the conditions to the proposal are as follows: 1) vacation of all alleys located -2- U THERE WERE NO CLAIMS THERE WERE NO COMMUNICATIONS THERE WAS NO OLD BUSINESS NO BIDS WERE RECEIVED BY 10:00 A.M. JANUARY 4, 1993 E South Bend Redevelopment Commission Special Meeting - January 4, 1993 6. NEW BUSINESS (Cont.) b. continued... a] within the parcel, 2) relocation of existing utilities to allow for construction, 3) City to install new curbs and sidewalks where necessary, 4) favorable environmental phase one (and phase two, if necessary) environmental assessment, at the City's expense, 5) removal of debris, tree stumps and old concrete. Mr. Pocius noted that Parcel 11 is an "L" shaped parcel, approximately 3 acres, bounded by Garst, Franklin, Stull and Lafayette. Mrs. Kolata noted that Devlin's proposal is to construct a 42,400 square foot masonry and steel building to be occupied by Alcon Building Products to house its sales, service, warehouse and distribution facilities. The building will contain approximately 4,800 square feet of office space and 37,700 square feet of warehouse space. Alcon is a wholesale distributor of building products. Its customers are contractors and retail building suppliers. It sells vinyl and aluminum siding and accessories, replacement windows and doors, roofmg, insulation, and exterior decorative architectural products. Alcon presently employs 20 people with an annual payroll of approximately $600,000. It is anticipated that the redevelopment project will increase the employee base by three or four employees. Devlin expects to begin construction within 30 days of closing on the real estate and complete construction within five months. Mrs. Kolata noted that the bid was complete and in order. -3- South Bend Redevelopment Commission Special Meeting - January 4, 1993 6. NEW BUSINESS (Cont.) b. continued... The second bid was for Parcel 15 from Gunther W. Jordan Corp. ( Exacto). They bid $2,690 for the parcel which is approximately 4,100 square feet on the NW comer of Lafayette and Garst. Exacto is a precision machine shop with approximately 80 employees. They have already acquired the lot immediately north of Parcel 15. They would use the parcel for future expansion. Upon a motion by Mr. Sharp, seconded by Mr. COMMISSION RECEIVED THE BID Donoho and unanimously carried, the Commission FROM DEVLIN CORPORATION FOR received the bid from Devlin Corporation for DISPOSITION PARCEL 11 IN THE Disposition Parcel 11 in the Studebaker Corridor STUDEBAKER CORRIDOR AND THE BID FROM GUNTHER W. JORDAN Development Area and the bid from Gunther W. CORP. FOR DISPOSITION PARCEL 15 Jordan Corp. for Disposition Parcel 15 in the IN THE STUDEBAKER CORRIDOR Studebaker Corridor Development Area and DEVELOPMENT AREA AND referred the bids to staff for review. REFERRED THE BIDS TO STAFF FOR REVIEW c. Commission authorization requested to petition South Bend Common Council for Vacation of Allev in the Studebaker Corridor Development Area. (block bounded by Garst, Lafayette, Stull and Franklin streets) Mrs. Kolata explained items 6.c. and 6.d. together. Item 6.c. requests vacation of the north- south alley and the east -west alley bounded by Garst, Lafayette, Stull and Franklin. Mrs. Kolata explained that item 6.d. concerns the north -south alley between Garst, Michigan, Stull and Main Streets. There was considerable discussion about how this vacation would impact Gomey Plaza and whether Real Services and the Policemen's Credit Union needed to sign the -4- South Bend Redevelopment Commission IL Special Meeting - January 4, 1993 6. NEW BUSINESS (Cont.) c. continued... petition. It was decided to go ahead with approval of the petition subject to staff discussing the situation with Mr. Gorney and the Board of Public works. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission authorized the staff to petition the Common Council for Vacation of Alleys in the Studebaker Corridor Development Area. (block bounded by Garst, Lafayette, Stull and Franklin streets) d. Commission authorization requested to petition South Bend Common Council for Vacation of Allev in the Studebaker Corridor Development Area. (block bounded by Garst, Michigan, Stull and Main streets) Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission authorized the staff to petition the Common Council for Vacation of Alley in the Studebaker Corridor Development Area. (block bounded by Garst, Michigan, Stull and Main streets) e. Commission approval requested for Resolution No. 1126 amending Resolution No. 1124 entitled "A Resolution of the South Bend Redevelopment Commission amending Resolution No. 1118 entitled 'A Resolution of the South Bend Redevelopment Commission authorizing the issuance of bonds on parity with the City of South Bend Redevelopment District Tax Increment Revenue Bonds of 1985, the City of South Bend Redevelopment District Tax Increment Revenue -5- COMMISSION AUTHORIZED THE STAFF TO PETITION THE COMMON COUNCIL FOR VACATION OF ALLEYS IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA (BLOCK BOUNDED BY GARST, LAFAYETTE, STULL AND FRANKLIN STREETS) COMMISSION AUTHORIZED THE STAFF TO PETITION THE COMMON COUNCIL FOR VACATION OF ALLEY IN THE STUDEBAKER CORRIDOR DEVELOPMENT AREA (BLOCK BOUNDED BY GARST, MICHIGAN, STULL AND MAIN STREETS) 0 0 Bonds of 1986 and the City of South Bend + Redevelopment District Tax Increment Revenue Bonds of 1988 for the purpose of raising money for redevelopment in the South Bend Central Allocation Area. "' Mr. Rompola explained that the Commission approved Resolution No. 1124 at its December 18 meeting authorizing the issuance of Bond Anticipation Notes (BAN) to be sold to the Indiana Bond Bank to provide funding for interim costs related to the College Football Hall of Fame. Resolution No. 1126 aligns the interest payment date with the Bond Bank's BAN. Resolution No. 1124 stated that the payment dates were February 1 and August 1. The Bond Bank uses an annual payment date of December 31. The resolution also changes the date of bond closing to 1993, since closing will be January 6, 1993. Mrs. Kolata noted that selling the BAN instead of the TIF bond allows the City to save approximately $85,000 in interest. We expect to pay the BAN off next summer with a long term bond for the Hall of Fame financing, but could extend payment out until December 31, 1994. Upon a motion by Mr. Donoho, seconded by Mr. COMMISSION APPROVED Sharp and unanimously carried, the Commission RESOLUTION NO. 1126 AMENDING approved Resolution No. 1126 amending RESOLUTION NO. 1124 ENTITLED "A Resolution No. 1124 entitled "A Resolution of the RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission amending AMENDING RESOLUTION NO. 1118 Resolution No. 1118 entitled 'A Resolution of the ENTITLED 'A RESOLUTION OF THE South Bend Redevelopment Commission SOUTH BEND REDEVELOPMENT authorizing the issuance of bonds on parity with COMMISSION AUTHORIZING the City of South Bend Redevelopment District ISSUANCE OF BONDS ON PARITY Tax Increment Revenue Bonds of 1985, the City of WITH THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX South Bend Redevelopment District Tax Increment INCREMENT REVENUE BONDS OF Revenue Bonds of 1986 and the City of South 1985, THE CITY OF SOUTH BEND Bend Redevelopment District Tax Increment REDEVELOPMENT DISTRICT TAX Revenue Bonds of 1988 for the purpose of raising INCREMENT REVENUE BONDS OF money for redevelopment in the South Bend 1986 AND THE CITY OF SOUTH BEND REDEVELOPMENT DISTRICT TAX U 6 0 South BendRedevelopment Commission Special Meeting - January 4, 1993 6. NEW BUSINESS (Cont.) Central Allocation Area.' ° INCREMENT REVENUE BONDS OF 1988 FOR THE PURPOSE OF RAISING MONEY FOR REDEVELOPMENT IN THE SOUTH BEND CENTRAL ALLOCATION AREA'" f. Commission annroval reauested for Resolution No. 1127 amending Resolution No. 1094 which amended Resolution No. 1065 and Resolution No. 1054 regarding the issuance of tax increment revenue refunding bonds and amending the resolutions of the Redevelopment Commission authorizing the issuance of its outstanding tax increment revenue bonds. Mrs. Kolata explained that this resolution is related to the refunding of the callable portions of the 1985 and 1986 'TIF bonds. We left it up to the IV bidders as to whether they wanted to take the AMBAC insurance. The buyer of the bonds has taken the bond insurance. Since the payment amounts on the bonds varies throughout the life of the bonds, AMBAC has asked that we adopt this resolution which clarifies we will maintain 150% coverage of the maximum payment of our debt service. Upon a motion by Mr. Donoho, seconded by Mr. COMMISSION APPROVED Sharp and unanimously carried, the Commission RESOLUTION NO. 1127 AMENDING approved Resolution No. 1127 amending RESOLUTION NO. 1094 WHICH Resolution No. 1094 which amended Resolution AMENDED RESOLUTION NO. 1065 No. 1065 and Resolution No. 1054 regarding the AND RESOLUTION NO. 1054 REGARDING THE ISSUANCE OF TAX issuance of tax increment revenue refunding bonds, INCREMENT REVENUE REFUNDING and amending the resolutions of the BONDS, AND AMENDING THE Redevelopment Commission authorizing the RESOLUTIONS OF THE issuance of its outstanding tax increment revenue REDEVELOPMENT COMMISSION bonds. AUTHORIZING THE ISSUANCE OF ITS OUTSTANDING TAX INCREMENT REVENUE BONDS -7- [�J South Bend Redevelopment Commission Special Meeting - January 4, 1993 6. NEW BUSINESS (Cont.) g. Commission approval requested for Resolution No. 1128 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. Mrs. Kolata explained that this is similar to the resolution in 1992 which appropriates $52,000 of the rent from the Palais Royale building to pay for project expenses in the Palms Royale. The resolution from 1992 expired at the end of 1992. Upon a motion by Mr. Donoho, seconded by Mr. Sharp and unanimously carried, the Commission approved Resolution No. 1128 determining to pay certain expenses incurred for local public improvements in or serving the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) from the South Bend Central Allocation Area (South Bend Allocation Area No. 1A) Special Fund. 7. PROGRESS REPORTS COMMISSION APPROVED RESOLUTION NO. 1128 DETERMINING TO PAY CERTAIN EXPENSES INCURRED FOR LOCAL PUBLIC IMPROVEMENTS IN OR SERVING THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) FROM THE SOUTH BEND CENTRAL ALLOCATION AREA (SOUTH BEND ALLOCATION AREA NO. 1A) SPECIAL FUND There were no progress reports. THERE WERE NO PROGRESS REPORTS 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment NEXT COMMISSION MEETING Commission is scheduled for Friday, January 15, 1993 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the ADJOURNMENT Redvelopment Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Sharp seconded the motion and the meeting was adjourned at 10:58 a.m. Paula N. Auburn, President Ann E. Kolata, Director -9-