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HomeMy WebLinkAbout1 RDC Packet 5.12.22South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Agenda Regular Meeting, May 12, 2022 – 9:30 a.m. BPW Conference Room 13th Floor or https://tinyurl.com/RDC51222 1.Roll Call 2.Approval of Minutes A.Minutes of the Regular Meeting of Thursday, April 28, 2022 3.Approval of Claims 4.Old Business 5.New Business A.River West and South Side Development Areas 1.Budget Request (Additional Roadways) B.Other 1.Resolution No. 3551 (Determining Tax Increment to be Collected 2023) 2.Mortgage Release (Webb) 3.Landlord Estoppel Certificate 4.Draft River East Expansion (Informational Only) 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting: Thursday, May 26, 2022, 9:30 am 1 South Be n d Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, IN SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING April 28, 2022 – 9:00 am https://tinyurl.com/RDC42822 or BPW Conference Room 13th Floor Presiding: Marcia Jones, President The meeting was called to order at 9:30 a.m. 1.ROLL CALL Members Present: Marcia Jones, President – IP Troy Warner, Secretary – IP Eli Wax - V Vivian Sallie, Commissioner – IP Leslie Wesley, Commissioner - V IP= In Person V= Virtual Members Absent: Don Inks, Vice-President – Trouble Connecting Legal Counsel: Sandra Kennedy, Esq. Danielle Campbell-Weiss, Esq. Jenna Throw Redevelopment Staff: Mary Brazinsky, Board Secretary Others Present: Caleb Bauer Joseph Molnar Brian Donoghue Laura Althoff Angelina Billo Amy Paul Conrad Damian John Llyod Tim Sexton DCI - IP DCI – IP IT - IP DCI - V DCI - V DCI - V Resident – V V Notre Dame - V 2A South Bend Redevelopment Commission Regular Meeting – April 28, 2022 2.Approval of Minutes •Approval of Minutes of the Regular Meeting of Thursday, April 14, 2022 Upon a motion by Commissioner Sallie, seconded by Secretary Warner, the motion carried unanimously, the Commission approved the minutes of the regular meeting of Thursday, April 14, 2022. 3.Approval of Claims A.Claims Allowance Request 04.12.22 B.Claims Allowance Request 04.26.22 Upon a motion by Commissioner Sallie, seconded by Secretary Warner, the motion carried unanimously, the Commission approved the Claims Allowance Request 04.12.22 and 04.26.22 on Thursday, April 14, 2022. 4.Old Business 5.New Business A.River East Development Area 1.Cost Sharing Agreement (ND) Mr. Horvath presented Cost Sharing Agreement (ND). The University of Notre Dame was putting their hydro electric facility on Seitz Park which is Redevelopment owned property. Part of this required them to put in a new opening in the retaining wall so they could get the water in and back out. They were pouring new wall on the southside of the facility that went around to the east race but stopped short of where the control feature is. When they cut the wall to expose the connection point, they found there was no reinforcement put in and there was a lot of rock and rubble. Notre Dame has agreed to a cost sharing agreement to do the work of replacing the wall and putting in reinforcements. The estimate cost is $307,000 and the city agrees to reimburse them up to half. We do have $119k that was brought over from the storm water fund last year that can be utilized for this project. Secretary Warner asked if there is a cap if we go above a certain cost? Mr. Horvath noted that is the agreement, however, that should not happen as this job is pretty straight forward. Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Cost Sharing Agreement (ND) submitted on Thursday, April 28, 2022. 2.Wall Repair City of South Bend License Mr. Horvath presented Wall Repair City of South Bend License. This agreement is so Notre Dame can access the above property to do the work of the retaining wall South Bend Redevelopment Commission Regular Meeting – April 28, 2022 and reinforcing it. Commission approval is requested. Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Wall Repair City of South Bend License submitted on Thursday, April 28, 2022. B.RDC General Fund 1.Budget Request (Commuters Trust) Mr. Bauer presented Budget Request (Commuters Trust). The Mayor’s Challenge was a competition organized by Bloomberg Philanthropies that called on cities to identify bold solutions that address the toughest problems facing cities. South Bend was selected out of over 300 cities as one of 35 “Champion Cities” and spent 6 months piloting different solutions to overcome transportation as a barrier to stable employment. In September 2019, the city launched the next phase of the program under the name Commuters Trust after being selected as one of nine winners of the Mayors Challenge. The Commuters Trust team works directly with transportation vendors across multiple modes, local employers, and community organizations to provide innovative solutions for individuals facing transportation insecurity. In 2021, the program provided over 10,000 free and discounted rides to low-income residents in the South Bend region. In the next phase of the program, the Commuters Trust team will work with local partners MACOG and the St Joseph County United Way. The United Way will continue to partner to deliver the Community Nonprofit Partner Program (11 Community Partners, 150 participants) and has committed to working to integrate CNPP into their annual funding cycle. MACOG will work closely with the Commuters Trust team as they continue to promote vanpool as an aspect of the employer-partnered program. The recent comprehensive analysis of the region’s transportation systems (South Bend + Elkhart) pointed to the difficulties of repeatedly adjusting fixed bus routes to accommodate new business development. At current levels of employer density and long commutes for many South Bend residents (Elkhart, Goshen, Middlebury) more flexible solutions like ride-share and vanpool need to be included (and can qualify for funding) as part of a comprehensive transit approach. Request includes funding for program support staffing and direct costs (bus passes, Uber/Lyft, vanpool). The request is for $200k. Brian Donoghue noted that this funding will able us to allocate funding from different organizations to help residents through 2023. Secretary Warner asked how the process will work for residents. Mr. Donoghue replied that we are in the early stages. We are working with employers to sign up for the program. Macog believes there is a funding source on their side and will be federally funded in the future which could include Uber/Lyft. Commissioner Sallie asked what the cost is to the resident. South Bend Redevelopment Commission Regular Meeting – April 28, 2022 Mr. Donoghue noted it depends how much the employers are willing to contribute but it should be about $5 per ride. Commissioner Wax asked what percentage will be funded. Mr. Donoghue stated in the life span of the project it will be about one-third of the project. Commissioner Wax asked what are we hoping the total number of rides will be. Mr. Donoghue stated he will have to pull the numbers, but it is over 10,000 at this point. Commissioner Wax asked what the cost per ride is. Mr. Donoghue stated about $12 total per rider. Mr. Bauer states that right now it is being utilized by parents getting to the center or by the refugees who have just arrived and do not understand how to use Transpo or other means of transportation. Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Budget Request (Commuters Trust) submitted on Thursday, April 28, 2022. 2.Budget Request (Refugee Support) Mr. Bauer presented Budget Request (Refugee Support). We are requesting $50K from the Pokagon fund. Disbursement of funds for the support of recently resettled immigrants in partnership with La Casa de Amistad. As some of you are aware Catholic Charities and United Religious Communities have hosted 60 refugees in the last few months. With the recent events in Ukraine and other ongoing crises around the world, refugee resettlement agencies anticipate approximately 50 or more new arrivals by the Fall. The funds requested will supplement the costs of translation and interpretation services for legal work and health care, including mental health care. The funds will also supplement transportation services while immigrants work towards attaining driver’s licenses. They will also cover the administrative costs of these services. Juan Constantino Lara, Executive Director La Casa de Amistad states it has been a big undertaking with special visas and limitations with dialectics. Help for them has been limited. We are trying to provide the refugees with mental health care, legal, paralegals and other attorneys to help prepare their cases which have been adding up to hundreds of pages each. We are on a strict timeline for their cases. We are partnering with others to assist. Funding, interpreters, and legal aid are the main needs. South Bend Redevelopment Commission Regular Meeting – April 28, 2022 Upon a motion by Secretary Warner, seconded by Commissioner Sallie, the motion carried unanimously, the Commission approved Budget Request (Refugee Support) submitted on Thursday, April 28, 2022. C.River West Development Area 1.Second Amendment to License Agreement (M&M Promotions) Mr. Molnar presented Second Amendment to License Agreement (M&M Promotions). This is a second amendment to a concert agreement that was to take place in 2021 and early 2022. Their headliner has now asked if they can move to October 2022. This will be at Ignition Park in a slightly different lot. It is now closer the police station. Everything else about the agreement has stayed the same. Upon a motion by Commissioner Sallie, seconded by Secretary Warner, the motion carried unanimously, the Commission approved Second Amendment to License Agreement (M&M Promotions) submitted on Thursday, April 28, 2022. D.West Washington Chapin Development Area 1.Resolution No. 3550 (Accepting the Transfer of Property from BPW 2 lots Walnut & Chestnut) Mr. Molnar presented Resolution No. 3550 (Accepting the Transfer of Property from BPW 2 lots Walnut & Chestnut). This is an accepting resolution from BPW for two parcels on the west side of South Bend. One parcel is a large and one is a very small lot. A developer is interested in developing both. We will be preparing these for the disposition process in the future and hopefully working with a developer. Upon a motion by Commissioner Wax, seconded by Secretary Warner, the motion carried unanimously, the Commission approved Resolution No. 3550 (Accepting the Transfer of Property from BPW 2 lots Walnut & Chestnut) submitted on Thursday, April 28, 2022. South Bend Redevelopment Commission Regular Meeting – April 28, 2022 6.Progress Reports A.Tax Abatement B.Common Council C.Other 1.Caleb Bauer introduced two members of the DCI team. Joseph Molnar is the new Property Develop Manager. He will be learning Dave Relos position and working with the Redevelopment Commission. Rachel Boyles will be taking the position of Zoning Specialist. Congratulations to both of them. 7.Next Commission Meeting: Thursday, May 12, 2022 8.Adjournment Thursday, April 28, 2022, 10:01 a.m. Troy Warner, Secretary Marcia I Jones, President Redevelopment Commission Agenda Item DATE: May 12, 2022 FROM: Kara Boyles SUBJECT: Budget Request (Additional Roadway Paving) Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington PURPOSE OF REQUEST: During this past winter season, several high traffic volume streets have rapidly deteriorated and need to be addressed immediately. These streets are currently not funded as part of the Rebuilding Our Streets Road Plan. The Department of Public Works requests funding from the SSDA and RWDA to improve the following streets: 1.SSDA a.Miami Street from Calvert Street to Ireland Road b.Ireland Road and Ironwood Dr Intersection 2.RWDA a.Sample Street from Olive Street to Illinois Street b.Ameritech Drive & Cleveland Road Intersection c.Sheridan Street from Lincoln Way West to Keller Street parking lane SSDA request: $2,000,000 RWDA request: $1,550,000 INTERNAL USE ONLY: Project Code: __ ____________ _________________________; Total Amount new/change ( inc/dec) in budget: _______________; Break down: Costs: Engineering Amt: ________________; Other Prof Serv Amt_________________; Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________; Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________ ___________________________________________. Going to BPW for Contracting? Y/N Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________ _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION 5A1 1 RESOLUTION NO. 3551 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN THE YEAR 2023 IS NEEDED TO SATISFY OBLIGATIONS OF THE COMMISSION AND THAT NO EXCESS ASSESSED VALUE MAY BE ALLOCATED TO THE RESPECTIVE TAXING UNITS AND OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the governing body of the South Bend, Indiana, Department of Redevelopment (the "Department") and of the Redevelopment District of the City of South Bend, Indiana (the ''Redevelopment District"), exists and operates under the provisions of IC 36-7-14, as amended from time to time (the "Act"); and WHEREAS, the Commission has previously adopted resolutions, which have been amended from time to time, declaring various portions of the City of South Bend to be economic development areas or redevelopment areas within the meaning of the Act (the "Areas") and designated territory within such Areas as allocation areas (the "Allocation Areas") under Section 39 of the Act, which Allocation Areas are listed in Exhibit A attached hereto; and WHEREAS, the Commission, in accordance with the Act, has previously established an allocation fund for each of the Allocation Areas (the "Allocation Funds"); and WHEREAS, Section 39 of the Act requires the Commission to determine the amount, if any, by which the assessed value of the taxable property in the Allocation Areas for the most recent assessment date minus the base assessed value, when multiplied by the estimated tax rate of the respective Allocation Areas, will exceed the amount of assessed value needed to produce the property taxes necessary to make, when due, principal and interest payments on bonds payable from the Allocation Fund, plus the amount necessary for other purposes described in Section 39 of the Act; and WHEREAS, Section 39 of the Act requires the Commission to provide to the St. Joseph County Auditor, the Common Council, the Department of Local Government Finance, and the fiscal officers for each taxing unit located wholly or partly within the respective Allocation Areas written notice stating (i) the amount, if any, of excess assessed value that the Commission has determined may be allocated to the respective taxing units in the manner prescribed in Section 39 of the Act, or (ii) that the Commission has determined that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in Section 39 of the Act; and NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1.The Commission hereby determines that there is no excess assessed value in the Allocation Areas that may be allocated to the respective taxing units in the manner prescribed in Section 39 of the Act because the Commission hereby finds that, for each respective Allocation 5B1 2 Area, the assessed value of the taxable property in the Allocation Area for the most recent assessment date minus the base assessed value, when multiplied by the estimated tax rate of the Allocation Area, will not exceed the amount of assessed value needed to produce the property taxes necessary to make, when due, principal and interest payments on bonds payable from the Allocation Fund of the Allocation Area, plus the amount necessary for other purposes described in Section 39 of the Act. Accordingly, for tax year payable 2023, the Commission determines that no amount of assessed value of the Allocation Areas will be allocated to the respective taxing units in the manner prescribed in Section 39 of the Act. In making this determination, the Commission has considered the effect that such determination will have on the property tax rate in the Redevelopment District. 2.This determination for 2023 shall not be construed to affect any future determination of the Commission with respect to the capture of assessed value of the taxable property in the Allocation Areas in the years following 2023. 3.The President or Vice President of the Commission is hereby authorized and directed to immediately notify or cause to be notified the St. Joseph County Auditor, the South Bend Common Council, the Department of Local Government Finance, and the officers who are authorized to fix budgets, tax rates, and tax levies under Indiana Code 6-1.1-17-5 for each of the other taxing units wholly or partly located within the Allocation Areas of the determinations made herein by the Commission, by way of a letter in substantially the form attached hereto as Exhibit B, which notice is intended to satisfy the requirements of Section 39 of the Act. Further, the Commission acknowledges that, based on its determination herein, no notice is due to the St. Joseph County Auditor under 50 IAC 8-2-4(b). ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment Commission held virtually and in person at 1308 County-City Building, 227 W Jefferson Boulevard, South Bend, Indiana on the 12th day of May 2022. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT ________________________________ Marcia I. Jones, President ATTEST: ________________________________ Troy Warner, Secretary EXHIBIT A Allocation Areas 1)River West Development Area 2)West Washington Chapin Development Area 3)River East Development Area Allocation Area #1 4)River East Development Area Allocation Area #2 5)South Side General Development Area #1 6)Douglas Road Economic Development Area EXHIBIT B (Form of Letter) Date Mr./Ms. [Name] Taxing Unit Address Subject: Request Regarding Capture of Incremental Assessed Value for the City of South Bend Dear Mr./Ms. [Name]: In accordance with the provisions of Indiana Code Section 36-7-14-39, the South Bend Redevelopment Commission has determined by Resolution No. 35xx, passed May 12, 2022, that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in Indiana Code Section 36-7-14-39(b)(1). The Allocation Areas of the City of South Bend covered by this letter are as follows: River West Development Area West Washington Chapin Development Area River East Development Area Allocation Area # 1 River East Development Area Allocation Area #2 South Side General Development Area #1 Douglas Road Economic Development Area Thank you. Sincerely, South Bend Redevelopment Commission Marcia I. Jones, President MORTGAGE RELEASE THIS CERTIFIES that a Mortgage (the “Mortgage”) by Ronald L. Webb to and in favor of City of South Bend for the use and benefit of its Department of Redevelopment (“Holder”), dated November 18, 1993 and recorded December 3, 1993 as Instrument No. 9349967 in the Office of the Recorder of St. Joseph County, Indiana, together with any amendments, renewals, extensions, or modifications thereto, has been fully satisfied and such Mortgage is hereby FULLY RELEASED. The South Bend Redevelopment Commission is the governing body of the City of South Bend Department of Redevelopment. The undersigned President and Secretary of the South Bend Redevelopment Commission executing this Mortgage Release on behalf of the Holder certify that they have full power and authority to execute and deliver this Mortgage Release and that all necessary action for making this Mortgage Release has been taken. IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed as of the 29th day of April 2022. SOUTH BEND REDEVELOPMENT COMMISSION By: Marcia I. Jones, President ATTEST: Troy Warner, Secretary STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public, in and for said County and State, personally appeared Marcia I. Jones and Troy Warner, known to me to be the President and Secretary, respectively, of the South Bend Redevelopment Commission and acknowledged their voluntary execution of the foregoing Mortgage Release being authorized so to do. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal on the 29th day of April 2022. ____________________________________ ________________________, Notary Public Residing in St. Joseph County, Indiana Commission Expires: __________________ I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. Christina M. Shakour. This instrument was prepared by Christina M. Shakour, Assistant City Attorney, 1200 S. County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601. 5B2 LESSOR ESTOPPEL CERTIFICATE This Lessor Estoppel Certificate (“Certificate”), effective as of June 1, 2022 is given by the City of South Bend, Indiana (the “City”), a municipal corporation, acting by and through its Redevelopment Commission, governing body of the Department of Redevelopment and its Board of Park Commissioners (collectively the “Lessor”). Reference is made to that certain Ground Lease by and between the City and the University of Notre Dame du Lac, an Indiana nonprofit corporation (“University”) dated December 12, 2016 (the “Lease”). A Memorandum of Lease Agreement regarding the Lease was recorded May 7, 2021 as Instrument No. 2021-15113 in the Office of the Recorder of St Joseph Count, Indiana. Pursuant to that certain Assignment and Assumption of Ground Lease dated April 20, 2022, the University assigned the Lease to ND Hydro, LLC, an Indiana limited liability company (“Lessee”). A Memorandum of Assignment and Assumption of Ground Lease was recorded on April 21, 2022 and recorded as Instrument No. 2022-11710 in the Office of the Recorder of St Joseph County, Indiana. Capitalized terms not defined herein have the meanings given in the Lease. In connection with the financing of the hydroelectric project to be located on the property subject to the Lease (the “Project”), Lessee and certain affiliates thereof are entering into certain agreements with 1st Source Bank, an Indiana corporation (“Investor”). This Certificate is being delivered pursuant to the Equity Capital Contribution Agreement, dated August 23, 2021, by and between Investor, ND Renewable Energy, Inc., an Indiana corporation, and ND Hydro Holdco, LLC, a Delaware limited liability company (“HoldCo”). Based on the foregoing, and recognizing that Lessee, HoldCo and Investor will rely hereon, Lessor hereby confirms, agrees and represents and warrants to Lessee, HoldCo and Investor as follows: 1.Lessor is the current holder of fee title to the Leased Premises and has been duly authorized by appropriate action to perform its obligations under, and to carry out the terms of and the transactions contemplated by, the Lease and to enter into this Certificate. 2.The Lease is in full force and effect and is a binding obligation of Lessor. 3.There is no litigation, action, proceeding or investigation pending or, to Lessor’s knowledge, threatened against Lessor before any court or governmental authority that would affect Lessor’s ability to carry out the transactions contemplated by the Lease. 4.The execution, delivery and performance by Lessor of this Certificate will not result in any violation of, breach of or default under, any contract or agreement to which it is a party or by which it or its property is bound, or any applicable laws. Lessor has received no notice of a prior sale, transfer, assignment, hypothecation or pledge of Lessee’s interest in the Lease. 5.Neither Lessor nor Lessee is in default of any of its obligations under the Lease or has breached any representation, warranty or covenant under the Lease. 5B3 2 6.No event or condition exists which, with the passage of time or the giving of notice or both, would constitute a default or breach by Lessor or Lessee, or enable any party to terminate or suspend its obligations under the Lease. 7.All representations made by Lessor in the Lease were true and correct as of the effective date of the Lease and continue to be true and correct in all material respects on the date hereof. 8.Lessor has no existing counterclaims, offsets or defenses against Lessee under the Lease, and Lessor has no knowledge of any facts entitling Lessor to any claim, counterclaim or offset against Lessee in respect of the Lease. 9.The Lease, that certain Memorandum of Understanding dated June 14, 2016, and this Certificate are the only agreements by and among Lessor, the University, and Lessee with respect to the Leased Premises. 10.Lessor agrees that it will not amend or modify the Lease without the prior written consent of Investor, which consent shall not be unreasonably withheld, conditioned, or delayed. 11.Lessor agrees to deliver to Investor a copy of any and all notices concerning a default of Lessee under the Lease and will not terminate or suspend its obligations under the Lease until it (a) gives Investor as well as Lessee the opportunity to cure such default during the cure period (including any applicable extensions) specified in the Lease and (b) gives Investor the opportunity to cure such default for an additional period of sixty (60) days after the expiration of the applicable cure period. If any default (other than a payment default) cannot reasonably be cured within such sixty (60) day period, then so long as Investor commences pursuing such cure within such sixty (60) day period and thereafter diligently pursues such cure, such sixty (60) day period will be extended for the period required for the default to be cured, not to exceed an additional ninety (90) days. If Investor is prohibited from curing any default or from commencing or prosecuting foreclosure or other appropriate proceedings by operation of law or by any process, stay or injunction issued by any governmental authority or pursuant to any bankruptcy or insolvency proceeding or other similar proceeding involving Lessee, then the time periods specified herein for curing a default (other than a payment default) or commencing or prosecuting such foreclosure or other proceedings will be extended for the period of such prohibition. The notice address for Investor shall be as follows: 1st Source Bank 100 N. Michigan St South Bend, IN 46601 Facsimile: 574-235-2227 Attention: Russell Cramer Email: cramerr@1stsource.com 12.This Certificate may be executed in two or more counterparts and by different parties on separate counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. To the extent permitted by applicable laws, 3 this Certificate may be executed electronically and delivered by electronic transmission, and such electronic signatures shall be deemed original signatures for all purposes. IN WITNESS WHEREOF, Lessor has caused this Certificate to be duly executed as of the day and year first above written. LESSOR: CITY OF SOUTH BEND, INDIANA REDEVELOPMENT COMMISSION ____________________________ Marcia I. Jones, President ATTEST: ______________________________ Troy Warner, Secretary 4 CITY OF SOUTH BEND, INDIANA BOARD OF PARK COMMISSIONERS ______________________________ Mark Neal, President _____________________________ Consuela Hopkins, Vice President _____________________________ Aimee Buccellato, Member ____________________________ Dan Farrell, Member ATTEST: _____________________ Jessica Williams, Clerk 5B4 Information only - No Vote