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HomeMy WebLinkAbout01-08-90 Human Resources & Economic Development eratiiiiittre g onrt HUMAN RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE IIn tie enmuwn Omit of tip, Q Itg of l3,outll *tit: The January 8, 1990 meeting of the Human Resources and Economic Development Committee was called to order at 3 : 30 p.m. in the Council informal meeting room by its Chair Person Council Member Steve Luecke. Persons in attendance included Council Members: Slavinskas, Zakrzewski, Luecke, Coleman, Duda, Niezgodski, and Puzzello; citizen member Margot Doyle, Ann Kolata, Richard Nussbaum, Don Porter, Larry Koepfle, members of the news media, and Kathleen Cekanski-Farrand. Council Member Luecke updated the committee on Bill No. 119- 89 which would amend Chapter 2, Article 6 of the South Bend Municipal Code addressing tax abatement procedures. Council Member Luecke noted that there had been several meetings and drafts and redrafts of the proposed Bill. However, he noted that he would be recommending that it be continued at this evening's Council meeting to the January 22, 1990 meeting. The Committee then reviewed Bill No. 123-89 which would approve a lease • for certain land and public improvements between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission. Council Member Luecke called upon Ann Kolata to review the Bill. Mrs. Kolata noted that the South Bend Redevelopment Authority adopted Resolution No. 14 on November 16, 1989 which approved a proposed lease between the authority and the South Bend Redevelopment Commission. She also noted that at the meeting of November 17, 1989 the Commission scheduled a public hearing on the lease which was held on December 8, 1989. Mrs. Kolata then reviewed the basic projects which would be addressed. She noted that under Indiana law the Common Counicl is required to approve the proposed form of lease which is addressed by Bill No. 123-89. She noted that among the various projects the following were included: The Niles Avenue construction project and reconstruction for an estimated cost of $610,200; the Madison Street parking and landscaping improvements for an estimated cost of $314,500; improvements to Washington Street for an estimated cost of $249,900; the Riverbank Lighting Project for an estimated cost of $128,800; the Morris Civic Plaza Improvements for an estimated cost of $456, 350; the construction of the Howard Park Wall for an estimated cost of $288,200; the construction of a walkway along the Rink Riverside Property and the repair or Human Resources and Economic Development Committee +' 1-8-90 Page 2 demolition of the chimney for an estimated cost of $275, 000; the Viewing Park Improvements for an estimated cost of $165,203 ; a variety of curb and sidwalk improvements in the downtown area for an estimated cost of $91, 000; and Monroe Park acquisition for an estimated cost of $770, 000. Mrs. Kolata noted that the Monroe Park Acquisition was basically divided into three proposed categories namely acquisition of 8 parcels that are vacant land, acquisition of 11 properties that have houses and the demolition of those houses, and acquisition of 11 parcels with houses that would be rehabed. She provided a summary of the TIF project for 1990 (copy attached) and Council Member Luecke provided copies of the relevant pages of the South Bend Redevelopment Commission minutes of November 17th namely pages 17 through 24 (copy attached) . Mrs. Kolata noted that the lease incorporates a graduated lease payment with maximum lease payment to be $749, 000. She also noted that if the Council would act favorably on the proposed Bill, that the Board of Public Works would go forward with construction bids before the bond is sold. In response to a question raised by Council Member Luecke, Mrs. Kolata noted that the total project cost would be $4,895, 000.00 which includes capitalized interest and financing charges. The project cost without those expenses would be $3,300, 000. 00 with this amount including the supervisory costs and engineering. Council Member Luecke also had several questions, the first with regard to whether the proposed parking would be straight in parking. Mrs. Kolata noted that it would be since there is better ingress and egress for the driver as opposed to angle type parking. Council Member Duda voiced concern with regard to straight in parking and believes that is was more dangerous that the angle type parking. It was also noted that the property in front the Morris Civic was city property, however due to an agreement with 1st Source Bank that any proposed changes would have to be approved by the bank. Mrs. Kolata noted that ongoing negotiations with regard to the proposed upgrades were taking place. In response to a question raised by Council Member Luecke it was noted that the proposed improvements to the Rink Riverside property would require Rink Riverside donating property to the Redevelopment Commission before such improvements could be made. Council Member Coleman had a similar question with regard to the proposed park property improvements. It was noted that the Park Department would be required to deed over to the Redevelopment Authority for the life of the bond the various properties involved in order for such work to take place. Human Resources and Economic Development Committee 1-8-90 Page 3 Mrs. Kolata noted that the Department would be working closely with the title company to make sure that proper deeds and legal authorities would be followed. She also noted that there would be a property management agreement involved. Council Member Zakrzewski questioned what the length of the lease would be. He was advised that it would be a twenty- two lease agreement. Mrs. Kolata noted that the source of the funding would be the tax increment which our taxes received on new developments since it became a tax incremental district. This began in approximately 1980. The taxes are required to first go to the three TIF revenue bonds with any extra proceeds to be used against other purposes such as the proposed Bill. Mrs. Kolata noted that this would be the fifth project involved. She also noted that the parking garage is being paid through the tax increment. She further noted that no taxes would be levied to pay for this bond, however the ability to levy taxes would be a part of it if there was a shortfall. Council Member Niezgodski questioned the current status of the parking garage. He was advised that it is approximately one-half leased. Council Member Luecke questioned whether there were any proposed public improvements for the developer who is building on the northern section of Michigan Street. Mrs. Kolata noted that at the present time there were no public improvements anticipated. She also noted that with regard to additional projects anticipated that more parking is needed in the downtown and that additional acquisition along the East Bank are contemplated. Council Member Luecke stated that he believes that the projects which are proposed are appropriate but that we should stop drawing on TIF in the near future. In response to a question raised by Council Member Coleman it was noted that the Monroe Park would focus upon various sections of the old Monroe Street and Fellows Street for market rate and multi-family apartments and various other scattered sites. Council Member Slavinskas questioned what the effect would be in light of the reassessment on the increment. Mrs. Kolata noted that it should be the same since it would be adjusted so that it would not go down. Council Member Slavinskas noted that there is a potential for a large windfall and voiced concern with regard to the term of the lease and why the park projects were not excluded since the park board has its own bonding authority. Mrs. Kolata noted Human Resources and Economic Development Committee 1-8-90 Page 4 that in her opinion handling the park projects through this Bill would be much more timely and efficient. Council Member Niezgodski also noted that there should be a reduction of issuance and financing costs in the long run by having the park projects a part of this Bill. Mrs. Kolata further noted that the Common Council would not be required or involved in the appropriate process and that such authority remains with the Redevelopment Authority in such cases. Council Member Coleman questioned whether the projects were tied to the specific dollar amounts and was advised that amendments could take place, however, new projects could not be added unless the amendatory process was followed. Following further discussion Council Member Zakrzewski made a motion seconded by Council Member Duda that Bill No. 123- 89 be recommended favorably to Council. The motion passed with Council Members Luecke, Zakrzewski, and Duda in the majority, no one voting in opposition, and Council Member Slavinskas abstaining. Council Member Slavinskas noted that he abstained so that he could review the specifics of the lease agreement. There being no further business to come before the committee, the meeting was adjourned at 4: 15 p.m. Respectfully submitted, Council Member Steve Luecke, Chair Person Human Resources and Economic Development Committee SL:srk Attachments