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Home My WebLink AboutSM 06-24-94SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING June 24, 1994 8:30 a.m. Presiding: Paula N. Auburn President I. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: rw Media: Others: 1308 County -City Building 227 W. Jefferson Boulevard South Bend, Indiana Ms. Paula N. Auburn, President Mr. Roman J. Piasecki, Vice - President Mr. Michael Donoho Mr. Philip Faccenda Mr. Theo F. Sharp Ms. Jenny Pitts Manier Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary Mr. Don Porter, South Bend Tribune Mr. Randy Rompola, Baker & Daniels 2. APPROVAL OF MINUTES a. ADDroval of Minutes of the Regular Meetin of Friday, June 17, 1994. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Minutes of the Regular Meeting of Friday, June 17, 1994. 3. APPROVAL OF CLAIMS Claims Submitted June 24, 1994 for Approval ADMIN 1994 (212) Code Enforcement TIF General Fund -1- COMMISSION APPROVED THE MINUTES OF THE REGULAR MEETING OF FRIDAY, JUNE 17, 1994 $ 73.00 $ 50.00 South Bend Redevelopment Commission Special Meeting - June 24, 1994 3. 4. APPROVAL OF CLAIMS (Cont.) ADMIN 1994 (212) continued... Prudential Joseph C. Dunfee Realtors and Hedy L. Robinson $ 360.00 Federal Express $ 22.00 Tri County News $ 26.76 S.B.C.D.A. TIF - GENERAL ACCOUNT (420) Gibson -Lewis SAMPLE -EWING DEVELOPMENT AREA (414) C.R.I. State Building Commission St. Joseph County Treasurer Lenna M. DeJarnatt Thomas General Construction Superior Waste Systems Willis & Dorothy West Quizella A. McCauley Leo Trevino Debra Young and Valley American Bank Irene Hamman Rodney Sargent Indiana Michigan Power Rosie Redmon and York Title & Escrow, Inc. Mable Hall South Bend Water Works Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved the Claims submitted June 24, 1994. COMMUNICATIONS There were no Communications. -2- $ 1,612.00 $ 185.00 $ 57.00 $ 723.55 $ 21,850.00 $ 1,045.00 $ 79.00 $ 17,834.41 $ 1,050.00 $ 19,699.67 $ 3,158.92 $ 3,674.53 $ 3,158.92 $ 934.73 $ 20,900.00 $ 5,775.00 $ 146.97 COMMISSION APPROVED THE CLAIMS SUBMITTED JUNE 24, 1994 THERE WERE NO COMMUNICATIONS South Bend Redevelopment Commission Special Meeting - June 24, 1994 5. OLD BUSINESS There was no Old Business. 6. NEW BUSINESS. a. Commission approval requested for Resolution No. 1269 approving the transfer of real property to the City of South Bend. Mrs. Kolata explained that Habitat for Humanity wishes to build a home on a vacant lot at 618 S. Columbia in Monroe Park.. The lot is owned by the Commission. We'd like to transfer the lot to the Board of Public Works so that it could be transferred to Habitat. AdW Ms. Auburn asked whether the design review issues between the neighbors and Habitat have been resolved. Mrs. Kolata responded that Habitat has not officially come through design review, but we understand that the issues are being worked out. Habitat received the zoning variance they needed and at that time indicated that they planned to build a two story house on Clinton Street. Several of the existing houses on Columbia are one story houses, so the Habitat houses will not stand out in size. We understand they are making some additional changes in design to help the single story homes fit into the neighborhood better. Mrs. Kolata assured Ms. Auburn that we would see that we would continue to work with Habitat. Upon a motion by Mr. Donoho, seconded by Mr. Faccenda and unanimously carried, the Commission approved Resolution No. 1269 9911 THERE WAS NO OLD BUSINESS COMMISSION APPROVED RESOLUTION NO. 1269 APPROVING THE TRANSFER OF REAL PROPERTY TO THE CITY OF SOUTH BEND South Bend Redevelopment Commission Special Meeting - June 24, 1994 6. NEW BUSINESS (Cont.) a. continued... approving the transfer of real property to the City of South Bend. b. Commission approval requested for Resolution No. 1270 approving and authorizing the execution of an Amended and Restated Lease with the South Bend Redevelopment Authority relating to College Football Hall of Fame Project. Mr. Rompola explained that Resolution No. 1270 is similar to the Lease Addendum the Commission approved in connection with the Century Center financing. The original Lease was for a combined Century Center and Hall of Fame financing. The earlier Addendum made changes reflecting the Century Center financing and the fact that it was going forward alone. This Amended and Restated Lease combines those changes and adds the changes necessary to reflect the Hall of Fame financing. Since the Hall of Fame financing is a variable rate financing, the lease includes some definitions related to variable rate financing. The most important change in the Amended and Restated Lease relates to the fact that in a fixed rate financing, the lease would go out of existence when all of the bonds were paid off. In a variable rate financing, the lease goes out of existence when all the bonds are paid off plus any other fundings owed by the Redevelopment Authority for the repayment of the bonds are repaid. The bonds are being -4- GSouth Bend Redevelopment Commission Special Meeting - June 24, 1994 6. NEW BUSINESS (Cont.) b. continued... enhanced by a letter of credit. Once that letter of credit is repaid, the lease goes out of existence. Mrs. Kolata noted that using a variable rate of interest allows the bonds to be repaid as contributions come in. Ms. Auburn asked if the letter of credit is in place. Mr. Rompola responded that it is not. We expect it to be in place yet today or early next week. We are working on that and when it is in place the bonds will be priced and closed. ANIN Mr. Faccenda noted that when the public becomes aware of the letter of credit, he expects a negative reaction because it is not an American bank. He'd like to get the message out that that bank has been chosen because they were the least expensive. Mr. Rompola noted that several banks were contacted for a bid on providing a letter of credit. Four banks responded. The one we are working with now was the least costly. Mr. Faccenda noted that he keeps hoping that someone will say that the reason we are being hit with additional interest cost is because we had that unprecedented obstruction to this project. If we could have taken care of it several months ago when the projections were made, we could have saved at least a percentage point —which are huge dollars. Our opponents have caused the city -5- G- South Bend Redevelopment Commission L Special Meeting - June 24, 1994 6. NEW BUSINESS (Cont.) b. continued... a great deal more money. That needs to be said someplace. Ms. Auburn noted that the opposition also cost Coveleski Stadium a couple of percentage points in interest. Upon a motion by Mr. Piasecki, seconded by Mr. Donoho and unanimously carried, the Commission approved Resolution No. 1270 approving and authorizing the execution of an Amended and Restated Lease with the South Bend Redevelopment Authority relating to the College Football Hall of Fame Project. c. Commission approval requested for Release of Liability under Ground Lease. (1st Source /Marriott) Ms. Manier explained that the improvements that are the Marriott Hotel are proposed to be conveyed by their current owner, Aetna Insurance and Surety Company, to Host Marriott Corporation. Marriott will actually own the Ground Lease and the improvements. This Release releases Aetna from its liability under the Ground Lease at such time as Host Marriott agrees expressly to assume those liabilities. COMMISSION APPROVED RESOLUTION NO. 1270 APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDED AND RESTATED LEASE WITH THE SOUTH BEND REDEVELOPMENT AUTHORITY RELATING TO THE COLLEGE FOOTBALL HALL OF FAME PROJECT Upon a motion by Mr. Faccenda, seconded COMMISSION APPROVED THE RELEASE OF by Mr. Donoho and unanimously carried, the LIABILITY UNDER GROUND LEASE. (1ST Commission approved the Release of SOURCE /MARRIOM Liability under Ground Lease. (1st Source /Marriott) 4 South Bend Redevelopment Commission Special Meeting - June 24, 1994 7. PROGRESS REPORTS There were no Progress Reports. 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission is scheduled for July 1, 1994 at 10:00 a.m. 9. ADJOURNMENT There being no further business to come before the Commission, Mr. Donoho made a motion that the meeting be adjourned. Mr. Piasecki seconded the motion and the meeting was adjourned at 8:54 a.m. Paula N. Auburn, President -7- PROGRESS REPORTS NEXT COMMISSION MEETING ADJOURNMENT z�� za Ann E. Kolata, Director