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HomeMy WebLinkAbout03-14-88 Human Resources & Economic Development Olanuntttrr &part • Lila tic Q rniwwn &tountil vi tlgu faaf fd►, , Erndr RESO •CES AND ECONOMIC DEVELOPMENT COMMITTEE The March 14, 1988 meeting of the Human Resources and Economic Development Committee was called to order by its Councilman Steve Luecke at 5:20 p.m. in the - Council Informal Meeting Room. Persons in attendance included Councilmen: Niezgodski, Luecke, Soderberg, Puzzello, Slavinskas., Duda, Voorde, and Zakrzewski; Jeff Gibney, Beth Leonard, Jon Hunt, Kathy Baumgartner, Max Moore, Jim Wensits, Ann Kolata, Keith Kreuger, Mrs. Keener, Lynn Weber, Kent E. Richey, Robert Firth, and Kathleen Cekanski-Farrand. Councilman Luecke noted for the record that the members of his Committee included Councilmen Slavinskas, Duda, Coleman, and himself, and well as citizen member Jeff Gibney. He noted that since the Petitioners were present for Resolution Numbers 88-11 and 88-12 which dealt with real property tax abatement that he would entertain any questions with regard to these Resolutions. It was further noted that Resolution 88-11 was for Keener Printing and was a three year real property tax abatement confirmation and that Resolution 88-12 was for Tru-Green and would be a ten year real property tax abatement confirmation. Following discussion, Councilman Coleman made a motion seconded by Councilman Slavinskas that Resolution Numbers 88-11 and 88- 12 be recommended favorably to Council. The motion passed. Mr. Luecke did inquire as to the SIC classification number of Mr. Kreuger with regard to Tru-Green. Mr. Kreuger indicated that this was the best classification that they could determine that his business met. Councilman Luecke then noted that the next item on the agenda was to review Bill No. 9-88 which would approve an amendement to the industrial revolving fund. Beth Leonard requested a continuance on behalf of the City until March 28 , 1988. Councilman Coleman seconded by Councilman Slavinskas that Bill No. 9-88 be continued until March 28, 1988. The motion passed. Councilman Luecke noted that the next items to be reviewed were Bill No. 13-88 which would transfer $373,814 .00 amoung various accounts within the Department of Economic Development and Bill No. 14-88 which would transfer $78, 186. 00 amoung various accounts within the Department of Economic Development. Elizabeth Leonard, Director of the Financial and Program Management of the Department of Economic Development noted •••• .e... ..Io4iie• rue,t•nu.e CO that Bill No. 13-88 was basically a transfer Ordinance allowing monies to be transferred amoung various CD accounts. The reductions reflected unobligated balances at the end of the current contracts. She then briefly highlighted the increases. She noted that Bill No. 14-88 would appropriate additional CDBG Entitlement Funds which were anticipated. She then highlighted what the additional appropriations would accomplish. Councilman Puzzello made an inquiry with regard to day care subsidies and Jeff Gibney inquired into the Economic Development Capital Fund amounts. Councilman Luecke noted that overall this was basically a bookkeeping matter. It was also noted that $352 . 00 in Bill No. 13-88 would not be used in the Covelski Stadium project and this amount would be reduced from that project. Following further discussion, Councilman Slavinskas made a motion seconded by Councilman Coleman that Bill Numbers 13- 88 and 14-88 be recommended favorably to Council. The motion passed. The. Committee was then given a copy of substitute Bill No. 20-88 which dealt with an $11 million multi-family housing revenue bond involving the "Rain Tree Point Associates Limited Project. " Jon Hunt then introduced three individuals from Minneapolis, Minnesota namely Lynn Weber, Vice-President with Can-American, Mr. Kent E. Richey, an attorney with Leonard, Street and Deinard, and Robert Firth, an Investment Banker. Mr. Hunt noted that the Rain Tree Point Associates Limited Project was before the Council in 1985. There were various deadlines imposed by the Tax Reform Act and that this was one of thirteen projects considered nationally. In January, 1986 the Redevelopment Commission entered into a contract with the Developers for the sale of certain real estate. In 1987 and amendement to the sales contract was made. The Redevelopment Commission passed on the contract for the sale of land and at a meeting held earlier this afternoon they approved the transfer to Can-American South Bend Limited Partnership, a Minnesota limited partnership. Lynn Weber, of Can-American Realty Corporation of Minneapolis, Minnesota then provided further details with regard to a possible development of the area. She noted that her development company has been involved with the development of multi-apartment projects primarily in the Washington and Baltimore areas which have totaled over one hundred and eighty million dollars. She also noted that with regard to the hotel development that her company has been involved with projects totaling over one hundred million dollars primarily in the Naples, Florida area. They use a tax-exempt fund through Merrill Lynch and maintain an 2 ti } ongoing relationship. She stated that last week she visited the site in question for the first time. She saw that it met the criteria of being in a second tier city and would meet the requirement of an "In-Fill" for the City. She was very excited about the project and was even more positive when she saw that further redevelopment and rehabilitation had been done along the East Bank area. She emphasized that her company is good at what they do and hire experts and then put into place the necessary ingredients for the site to have financing. She stated that the company has twenty million dollars in net worth and has adequate capital at its disposal for such a project. She further noted that they do not have a architect in place, however, speculated that the project would include a two hundred unit plus project and would probably be three to four stories in height. It would have a stepping effect with outside parking, a club house and green space. The structures would be of high quality using wood frame along with brick. Vinyl siding or possible cedar were being considered. The time line involved included a six month bond period with construction hopefully to begin by September 15th if all elements could be addressed. Within the next ten days if the Council acted favorably this evening there would be a "design development" and that an architect and appraiser were on standby. She also noted that her company had expended over $35, 000. 00 in capital in order to go to the next step of this proposed development. Councilman Niezgodski recommended that if the project would take place that they consider using Mastic Corporation with regard to vinyl siding. Councilman Slavinskas noted that at first he was reluctant with regard to the suggestion of a suspension, however, he had spent time in reviewing the various financial portfolios made available and believed that the developer was aggressive and very innovative with regard to their ideas. Councilman Voorde noted that he had been in meetings late last week and had the opportunity to review many of the documents in question and found it to be an exciting project. The Council Attorney also noted that she had been involved with these meetings and detailed conversations with Mr. Hunt on Sunday. Councilman Puzzello stated she was pleased that there was ongoing discussion with regard to the development of this area and requested that pictures be made available with regard to the proposed construction once that phase of the project was met. Ann Kolata noted that the project would have to be reviewed by the Design Review Committee and that when meeting dates were set by that Committee she would advise the Council of those specific dates. 3 l Jeff Gibney inquired into the rental market which the developer was seeking. Miss Weber noted that prices would range from $460. 00 for a one bedroom apartment to $550.00 for a two bedroom apartment. Comparables would include Candelwood and Runaway Bay. Councilman Luecke had several questions with regard to the limited partnership and was advised that the general partnership held one percent and that ninety nine percent was held by G.G. Carlson in Minnesota. Can-American Realty Corporation was the general partner` and Can-American South Bend Limited Partnership was the limited partner. It was further noted that $36. 6 was ear-marked for hard construction costs of the project. It was also noted that there was an additional $100, 000. 00 which could be utilized if necessary. Councilman Luecke also inquired as to whether the the April 29, 1988 deadline was incorporated into the contract for sale of the property by the Redevelopment Commission. Mr. Hunt indicated that it was. Following further discussion, Councilman Slavinskas made a motion seconded by Councilman Coleman that substitute Bill No. 20-88 be recommended favorably to Council. The motion passed. There being no further business to come before the Committee, the meeting was adjourned at 6: 10 p.m. Respectfully Submitted, Councilman Steve Luecke, Chairman Human Resources and Economic Development Committee SL:srk 4