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HomeMy WebLinkAbout03-14-94 Community & Economic Development Committee *port COMMUNITY AND ECONOMIC DEVELOPMENT COMM1TFEE tbt Common Council of t1t City of Routh Veit The March 14, 1994, meeting of the Community and Economic Development Committee was called to order by its Chairperson, Councilmember Roland Kelly, at 5:00 p.m. in Council Informal Meeting room. Persons in attendance included Councilmembers Luecke, Washington, Kelly, Puzzello, Slavinskas, Zakrzewski, Coleman, Duda, and Ladewski; Mayor Joseph Kernan, Richard Nussbaum, Brian Hedman, Mikki Dobski, Susan Visser, Kevin Horton, Gene Oakley, John T. Phair, Phil St. Clair, Ann Kolata, Jenny Pitts Manier, T. Brooks Brademus, members of the news media, Joyce Boaler, Mike Beitzinger, and Kathleen Cekanski-Farrand. The first item on the agenda was to review Resolution No. 94-20 which is a ten (10)year real property tax abatement request for Toll Road Industrial Partners, L.P. Mr. Mike Beitzinger reviewed the Community and Economic Development report dated March 4, 1994 (copy attached). The petitioner intends to build a 100 square foot building in the Toll Road Industrial Park. It would be a regional warehousing and distribution center for Tech Data, which is a national company distributing micro computer and hardware products. The building cost is 2.4 million dollars. The project would created 30 to 50 new permanent jobs within the first year. Mr. John Phair gave further details of the proposed project. Following discussion, Councilmember Slavinskas made a motion, seconded by Councilmember Luecke, that Resolution No. 94-20 be recommended favorably to Council. The motion P assed. The next item on the agenda was to review Bill No. 14-94 which would approve the issuance of lease rental revenue bonds by the South Bend Redevelopment Authority. Mayor Kernan made the presentation. He noted that the Redevelopment Commission adopted a Resolution on Friday. He noted that the Commission required an additional step that is that the City Council have a formal role through the proposed Ordinance. Mayor Kernan stated that he was pleased to officially make known to the community that the National Football Foundation has committeed 4.5 million dollars as a guarantee to the project. He stated he believes this is a clear demonstration that they are a partner by pledging their assets to help raise money. He also noted that they will assist with the more then 90 private Chapters and 200 Universities who are members of the NFF. They also will assist in networking and with the day to day operation success of the project. Mayor Kernan also was pleased to note that private individuals who will be now known publicly this evening have committeed 2.5 million dollars in guarantees. Mayor Kernan stated that the University of Notre Dame will also assist in the project. Dr. Bill Sexton and Dr. Phil Faccenda froth the University namely the Community and Economic Development Committee March 14, 1994 Page 2 Vice-President of the University Affairs and the Legal Council will speak to the full Council this evening with regard to the University of Notre Dame's role. Lastly, Mayor Kernan noted that the hotel-motel tax bill was signed by Governor Bayh today. Funds will be used for pre-opening expenses such as marketing and promotion and possibly used for debt service, if necessary, in the future. A conservative figure of approximately 4 million dollars will be generated by the hotel-motel tax. Mayor Kernan noted that inlight of these guarantees 11 of the 14 million dollars is now in place. Excess revenues from the Hall may also be used to pay down any indebtednes s. In response to a question raised by Councilmember Zakrzewski regarding TIN,the revenue stream was then explained to the Committee. g g Mr. Kevin Horton reviewed the hand-out entitled "HOF FINANCING PLAN" (copy attached). It was noted that the debt service years would be 1994 through 2019. Mr. Horton, utilizing the attachments, clearly showed that there would 0 Y g x always money pay s be TIF mone to a for the Football Hall of Fame. Mr.Horto n explained lained the financing for both the Century Center improvements and the Hall of Fame. He noted that for the Hall of Fame the net debt service would be $5, 715, 026.00 which would come out of TIF or approximately 13 to 14 percent of the total TIF to supplement the Football Hall of Fame. He also stressed that this was a worse case scenario. Ann Kolata noted that there are currently six (6) TIF Bonds for approximately 15 million dollars. She agreed to provide further details on this topic at this evening's Common Council Meeting. that response to a question by Councilmember Ladewski, it was noted t at the escalator will be a part of the renovation of the Century Center. Mr. Brian Hedman then showed architectural renderings of the proposed changes which will total 2.6 million dollars. It was noted that the roof repairs would be some where between $650,000.00 to $750,000.00. Susan Visser stated that she believes it is a "Win, Win situation" and that with the changes the Art Center would be able to have a permanent collection gallery and their own entrance. If the Council acts favorably this evening, the construction on the Century Center would begin in July or August and be completed within a year. The timetable for the Football Hall of Fame was also highlighted(copy attached). Lastly, it was noted that the renovations to the Century Center would be by Allan Ritchie and the local architectural firm of MPA. It was noted that Mr. Ritchie was a partner of Philip Johnson of New York. During the public portion, Mr. Gene Oakley asked several questions regarding the financing. Mr. Nussbaum then reviewed the letters of March 2nd and March 10th regarding the guarantees for the Football Hall of Fame. 1 ' Community and Economic Development Committee March 14, 1994 Page 3 Several questions were raised by the Councilmembers. It was noted that April 15th is the target date for the sale of the bonds. Councilmember Zakrzewski questioned whether the letter from William Pierce had the backing of the Board of Trustees, and was advised that it had the backing of the entire Board. Following further discussion, Councilmember Slavinskas made a motion, seconded by Councilmember Ladewski, that Bill No. 14-94 be recommended favorably to 'IF Council. The motion passed. There being no further business to come before the Committee, the meeting was adjourned ed at 6:00 p.m. Respectfully submitted, F Council Member Roland Kelly, Chairperson Community and Economic Development Attachment(s) I i i r , l