HomeMy WebLinkAboutRedevelopment Commission Minutes 11.8.21
South Be n d.
Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, IN
46601
SOUTH BEND REDEVELOPMENT COMMISSION
REGULAR MEETING
November 8, 2021
9:30 a.m. https://tiny.cc/RDC110821
Presiding: Marcia Jones, President South Bend, Indiana
The meeting was called to order at 9:31 a.m.
1. ROLL CALL
Members Present: Marcia Jones, President
Don Inks, Vice-President
Troy Warner, Secretary
Vivian Sallie, Commissioner
Eli Wax, Commissioner
Leslie Wesley, Commissioner
Members Absent:
Legal Counsel: Sandra Kennedy, Esq.
Redevelopment Staff: Mary Brazinsky, Board Secretary
Others Present:
Santiago Garces
Tim Corcoran
Andrew Netter
Amanda Pietsch
Aaron Perri
Kyle Silveus
Ben Dougherty
Daniel Parker
Mark Peterson
Randy Rampola
Emma Adlam
Josh Sisk, Executive Director
Mike Danitra
DCI
DCI
DCI
DCI
VPA
Engineering
Admin & Finance
Admin & Finance
WNDU
Barnes & Thornburg
Resident
Potawatomi Zoo
Resident
South Bend Redevelopment Commission Regular Meeting – November 8, 2021
2. Approval of Minutes
• Approval of Minutes of the Regular Meeting of Thursday, October 28, 2021
Upon a motion by Vice-President Inks, seconded by Secretary Warner, the
motion carried unanimously, the Commission approved the minutes of the
regular meeting of Thursday, October 28, 2021.
3. Approval of Claims
• Claims Submitted for November 3, 2021
Upon a motion by Vice-President Inks, seconded by Commissioner Sallie, the
motion carried unanimously, the Commission approved the claims for
November 3, 2021, submitted on Thursday, November 8, 2021.
4. Old Business
5. New Business
A. River West Development Area
1. Resolution No. 3538 (Lease Rental Revenue Bonds of 2022 Morris
Performing Arts Center Project)
Mr. Parker Presented Resolution No. 3538 (Lease Rental Revenue Bonds of 2022
Morris Performing Arts Center Project). This resolution is the first step in several
steps for the 100-year Morris Performing Arts Center. This is for Lease Rental
Financing. All this Resolution does is approve the form of the lease.
Randy Rampola, Barnes, and Thornburg states this is the initial steps in the
improvements at the Morris. This resolution approved the form of the lease and
authorizes the lease hearing which is at the next Redevelopment Commission
Meeting on Monday, November 22, 2021. The lease itself is for the Morris. It
provides for an annual rental not to exceed $420k and has a current lease term of
not to exceed 25 years. Both options may be modified after the bonds are sold.
The lease provides language for the lease rental to be reduced and the rental to
be reduced to match whatever the debt service on the bonds will be. The lease
rental will be payable as set out on the lease from hotel/motel tax revenues so this
will leverage the .5% increase portion that is dedicated by the statute to pay for
improvements to the Morris. The lease will also be backed by special property tax
that will not be intended to be used. The lease rental is intended to be paid solely
from the motel/hotel tax but to minimize the interest expense, the city has agreed
to put a tax back-up in place, which is not uncommon. The city has used this
technique in the past. The most recent example is the double tracking project.
Baker Tilly is structuring this so it will pay the lease revenue from the bonds, but it
will fit in with the hotel/motel tax revenues with enough for coverage. With the
adoption of the resolution today, you are setting the public hearing on the lease for
South Bend Redevelopment Commission Regular Meeting – November 8, 2021
Monday, November 22nd. Commission approval is requested.
Secretary Warner asked what percentage of the increase we expect to pay the
bond payments, the entirety of the half percent or a smaller portion that we expect
to come in from the half percent.
Randy Rampola states that half percent is entirely pledged to the debt service on
the bonds, but there will be a coverage amount. Baker Tilly is structuring the lease
rental bonds so there will be 125% coverage; meaning if we have $100 that the
debt service payment would be $75 so there are $25 left over annually. The
hotel/motel tax board did adopt a pledge resolution adopting that half percent to
the payment of the debt service on the lease rental. That $25 will accrue in that
account and by state law that money would always be available to the Morris.
There would be opportunity in the future to use cash on hand for future
improvements on the Morris.
Upon a motion by Secretary Warner, seconded by President Jones, the motion
carried unanimously, the Commission approved Resolution No. 3538 (Lease
Rental Revenue Bonds of 2022 Morris Performing Arts Center Project)
submitted on Monday, November 8, 2021.
2. Resolution No. 3539 (Lease Rental Revenue Bonds of 2022 Potawatomi Zoo)
Mr. Parker Presented Resolution No. 3539 (Lease Rental Revenue Bonds of 2022
Potawatomi Zoo). This is like the Morris as we use the .5% of the hotel/motel tax
that will be dedicated to the Potawatomi Zoo. The approval of the resolution today
would just approve the lease. The entirety of the .5% of the hotel/motel tax board
was pledged last week but there is a coverage ratio so there will be a cash
balance particularly if the hotel business continues to grow and more people
continue to come into the city; the revenue could grow statutorily. Josh Sisk from
the Potawatomi Zoo is on the call.
Josh Sisk states that the cash balance will help us in the future to add to our
Master Plan in the future.
Randy Rampola adds that this lease is like the Double Tracking as we are
anticipating leasing 3 portions of streets; green, lawn and separate portions of wall
street to provide for the leasing mechanism. The leasing mechanism is again
important to provide the ability to have a tax back up in place. The term of this
lease is not to exceed 22 years.
Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the
motion carried unanimously, the Commission approved Resolution No. 3539
(Lease Rental Revenue Bonds of 2022 Potawatomi Zoo) submitted on Monday,
November 8, 2021.
South Bend Redevelopment Commission Regular Meeting – November 8, 2021
B.River East Development Area
1.Budget Request (Mishawaka Avenue Survey)
Mr. Silveus Presented Budget Request (Mishawaka Avenue Survey). This request
would fund the topographic survey that will collect data for future streetscape
improvement along Mishawaka Avenue. The overall projects vision is to calm the
traffic, beautify the area and support growth along this corridor. The survey would
extend from the Eddy Street ramps to Emerson Drive. The initial phase will end
approximately at Louise. Commission approval is requested.
Upon a motion by Vice-President Inks, seconded by Commissioner Sallie, the
motion carried unanimously, the Commission approved Budget Request
(Mishawaka Avenue Survey) submitted on Monday, November 8, 2021.
6.Progress Reports
A.Tax Abatement
B.Common Council
C.Other
7.Next Commission Meeting:
Monday, November 22, 2021, 9:30 a.m.
8.Adjournment
Monday, November 8, 2021, 9:51 a.m.
Troy Warner, Secretary Marcia Jones, President