Loading...
HomeMy WebLinkAbout2008-05-07 Redevelopment Authority MinutesSOUTH BEND REDEVELOPMENT AUTHORITY REGULAR MEETING May 7, 2008 1:30 p.m. Presiding: Jose Alvarez 1308 County-City Building 227 West Jefferson Boulevard South Bend, IN 46601 The May 7, 2008 Regular Meeting of the Redevelopment Authority was called to order at 1:30 p.m. by its President, Jose Alvarez. There was a quorum present. 1. ROLL CALL Members Present: Mr. Jose Alvarez, President Ms. Carolyn V. Pfotenhauer, Vice President Mr. Ray Thomas, Secretary Redevelopment Staff: Mr. Don Inks, Director of Economic Development Mrs. Jenny Hullinger, Recording Secretary 2. APPROVAL OF MINUTES Approval of the minutes of March 13, 2008 Upon a motion by Carolyn Pfotenhauer, seconded by Jose Alvarez, and unanimously carried, the Authority approved the Minutes of the Special Meeting of March 13, 2008. 3. NEW BUSINESS Authority approval requested to ratify the Annual Administrative Fee and Initiation Fee of $1,900. for the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Eddy Street Commons Project) $36,000,000 to U.S. Bank Upon a motion by Ms. Pfotenhauer, seconded by Mr. Alvarez, the Authority approved the request to ratify the Annual Administrative Fee and Initiation Fee of $1,900. for the South Bend Redevelopment Authority Lease Rental Revenue Bonds of 2008 (Eddy Street Commons Project) $36,000,000 to U.S. Bank b. Authority approval requested for Parking Garage Lease with Kite Realty Construction, LLC Mr. Inks asked the Authority to table this lease. All of the changes have not been made that Mr. Inks had requested. The Authority agreed to table this until the revisions have been made. 4. Claims Claims presented for May 7, 2008 The South Bend Redevelopment Authority May 7, 2008 Meeting Minutes City Securities Corporation Standard & Poor's Crowe Chizek & Company Baker & Daniels Baker & Daniels Baker & Daniels Issuance Fees 905.00 Analytical Service -bonds 11,800.00 bond Issuance Costs 75,000.00 Bond Counsel 98,723.06 Designation of Area 15,706.86 Development Agreement 104,072.00 Total: $342,207.66 Mr. Inks said the claims are all related to the issuance of the bonds. There may be a few more small ones that will come in. Ms. Pfotenhauer asked if Mr. Leone had approved the claims. Mr. Inks said the claims have been approved by both Mr. Leone and himself. Mr. Inks brought a letter from Baker and Daniels explaining why the fees are so high and their desire to help by providing a 10% reduction in their fees. Mr. Leone wanted the letter to be a part of the record of the meeting today. Mr. Inks said there are additional documents that are being worked on: an Easement Agreement for the whole site for construction purposes, the Garage Lease that was tabled today, and a Garage Lease with Kite. Mr. Inks made it clear to Baker and Daniels that we needed to be kept abreast of the fees on a much more regular basis. They have been sending monthly bills. We set aside $275,000. in issuance costs for legal fees, and these today total a little over $240,000. Ms. Pfotenhauer asked why we were being charged additional fees. Mr. Inks said the Development Agreement took a large amount of time. There were a lot of revisions. The documents now are more specific. Mr. Alvarez asked if another law firm would have lower legal fees, and Mr. Inks said we would not want to switch law firms and slow the project down. Ms. Pfotenhauer agreed, and said Baker and Daniels has always done good work for us. Mr. Thomas asked what would happen if we went over budget on legal fees. Mr. Inks said the department has appropriated funds for legal fees or may have to take funds from the Redevelopment fund that still has money left in it. Mr. Inks said by May 20 Kite and the University of Notre Dame have to have a finalized document. If we do not have that, then we would have to either tell the trustee to repurchase the bonds or we would be taking a significant risk in waiting for the agreement between the two parties. The University has not allowed us to see their agreement with Kite and has only provided us with a summary. There have been several closings scheduled with them in anticipation of them having a signed agreement. Mr. Alvarez asked if there is anything we can learn from this. Mr. Inks said, yes, we should have inserted ourselves in the process with the University and Kite from the beginning. We should be fully cognizant of the deal. Currently, we are anticipating buying the right of way of the roads in the project site and we probably should not be doing that. 2 H:\WPDATA\AUTHORTY\5-7-2008 REDEVELOPMENT AUTHORITY MINi1TES.DOC The South Bend Redevelopment Authority May 7, 2008 Meeting Minutes The University has negotiated some kind of an agreement with Kite and Kite is now in a position of saying how much they will make, what they have to pay the university and are then pushing the rest of the expenses on to the City. Mr. Thomas said we went ahead on a basis of trust and are now paying a price for that. Mr. Inks said it is still a very good project for the City even at the price we are paying. Upon a motion by Ms. Pfotenhauer, seconded by Mr. Thomas, the Authority unanimously approved the claims as presented. 4. NEXT MEETING DATE: May 21, 2008 5. ADJOURNMENT There being no further business to come before the Redevelopment Authority the meeting was adjourned at 1:55 p.m. 3 H:\WPDATA\AUTHORTY\5-7-2008 REDEVELOPMENT AUTHORITY MINi1TES.DOC Attachment to minutes: May 6, 2008 letter from Baker and Daniels