HomeMy WebLinkAbout2008-03-13 Redevelopment Authority MinutesSOUTH BEND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
March 13, 2008 1200 County-City Building
1:00 p.m. 227 West Jefferson Boulevard
Presiding: Jose Alvarez South Bend, IN 46601
The March 13, 2008 Special Meeting of the Redevelopment Authority was called to order at
1:00 p.m. by its President, Jose Alvarez. There was a quorum present.
1. ROLL CALL
Members Present: Mr. Jose Alvarez, President
Mr. Ray Thomas, Secretary
Member Absent: Ms. Carolyn V. Pfotenhauer, Vice President
Redevelopment Staff: Mr. Don Inks, Director of Economic Development
Mrs. Jenny Hullinger, Recording Secretary
Others Present: Ms. Allison Sell, Legal Counsel
2. APPROVAL OF MINUTES
Approval of the minutes of February 20, 2008
Upon a motion by Ray Thomas, seconded by Jose Alvarez, the Authority approved
the Minutes of the Regular Meeting of February 20, 2008.
3. NEW BUSINESS
Authority approval requested for Resolution No. 165 approving the sale of the
South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds of
2008 (Eddy Street Commons Project), amending Resolution No. 163 and
approving the execution of an addendum to the lease between the South Bend
Redevelopment Authority and the South Bend Redevelopment Commission for the
Eddy Street Commons Project, and other related projects
Ms. Sell said the Resolution approves the sale of bonds to City Securities
Corporation, the underwriter for the bond sale, with the aggregate principle
amount of $36M. The bonds mature in 2033. Resolution No. 165 amends
Resolution No. 163 as far as the terms of the bond. This resolution also adds
provisions for the Extraordinary Optional Redemption, which can occur on or
before July 1, 2008. Mr. Inks said the optional redemption period is there because
at the time we sold the bonds the University of Notre Dame still owns the property
related to the site. Kite is in the process of completing the property transfer from
the University of Notre Dame to themselves, and then Kite will transfer the
The South Bend Redevelopment Authority
March 13, 2008 Meeting Minutes
property to us that we need for the garage site and right-of--way. Until all of the
property transfers have taken place there is nothing to lease to the Commission to
generate the lease payments to pay the bonds. We will hold the bonds, and not
spend any of the proceeds until the property transfer has taken place. If the
property transfer does not take place the bonds can be paid off early in full. Kite
has agreed, in the Development Agreement, to cover all costs related to the
financing should that option be exercised. The property should be all transferred in
a week or two. The funds should be transferred next Tuesday. Mr. Alvarez wanted
to make sure the Authority is covered as far as the interest payments, and Mr. Inks
and Ms. Sell assured him that the Authority is covered. Mr. Alvarez asked why the
interest rate went up and then down and then up again before the bonds are paid
off. Ms. Sell said that would be a good question for the financial advisor. With the
twists and turns of the market right now it is hard to know what will happen in the
future. Mr. Inks said the overall interest rate is about 5.4%, which is a little higher
than the 5.0% we expected.
Upon a motion by Mr. Thomas, seconded by Mr. Alvarez, the Authority approved
Resolution No. 165 approving the sale of the South Bend Redevelopment
Authority Lease Rental Revenue Refunding Bonds of 2008 (Eddy Street
Commons Project), amending Resolution No. 163 and approving the execution of
an addendum to the lease between the South Bend Redevelopment Authority and
the South Bend Redevelopment Commission for the Eddy Street Commons
Project, and other related projects
b. Authority approval requested for Construction Management Agreement between
Kite Realty Construction, LLC ("Developer") and the City of South Bend,
Indiana, by and through its Board of Public Works, and the South Bend
Redevelopment Authority (Collectively, "City")
Mr. Inks said this is such a huge project and a piece of a more comprehensive
project. What we are doing with the bond dollars, through our Board of Public
Works, is removing ash, bringing in backfill, doing some basic grading on the site,
putting in utilities, roads, right-of--ways, landscaping, and the parking garage. The
building of the garage has to coordinate with other construction that has to take
place on the site. To make all of this work, we decided to put Kite in charge of all
the construction, which should eliminate conflict between "their contractors" and
"our contractors." They will use many of the same contractors as the City uses, but
for a dense development it is in the best interests of everyone to use Kite as the
construction manager. The Director of the Department of Public Works, Gary
Gilot, has reviewed this construction management agreement and is comfortable
with it. Kite will be at the site each day overseeing the project and reviewing the
claims, but all claims are still subject to the review of the Board of Public Works.
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The South Bend Redevelopment Authority
March 13, 2008 Meeting Minutes
Upon a motion by Mr. Thomas, seconded by Mr. Alvarez, the Authority approved
the Construction Management Agreement between Kite Realty Construction, LLC
("Developer") and the City of South Bend, Indiana, by and through its Board of
Public Works, and the South Bend Redevelopment Authority (Collectively, "City")
4. NEXT MEETING DATE: March 19, 2008
5. ADJOURNMENT
There being no further business to come before the Redevelopment Authority the meeting
was adjourned at 1:20 p.m.
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