HomeMy WebLinkAbout1988-04-27 Minutes.~.. .
SOUTH BEND REDEVELOPMENT AUTHORITY
SPECIAL MEETING
May 27, 19.88 1200 County-City Building
8.00 a.m. 227 W. Jefferson Boulevard
• South Bend, Indiana 46601
The May 27, 1988 Special Meeting of the Redevelopment Authority was called to
order at 8:06 a.m. by its President, Thomas J. Varga, Jr. There was a quorum
present.
1. Roll Call
Members Present:
Legal Counsel:
Redevelopment Staff:
News Media:
~2. A royal of Minutes
pp
Mr. Thomas J. Varga, Jr.
Mr. Chris Davey
Mr. Joseph Wroblewski
Mr. Richard Nussbaum II
Mrs. Ann Kolata, Deputy Executive Director
Mrs. Cheryl Phipps, Office Manager
Ms. Jeanne Derbeck, South Bend .Tribune
Upon a motion by Mr. Wroblewski, seconded by Mr. Davey and unanimously
carried, the Authority approved the Minutes of the Special Meeting of May
13, 1988.
3. Authority selection of Bond Trustee, Bond
St. Joseph/Wayne Parking Facility..
and
for the
Mr. Nussbaum noted that all of the banks submitting proposals submitted for
both the parking facility and the stadium. Eight banks submitted proposals:
Indiana National Bank, Indianapolis
Merchants National Bank & Trust, Indianapolis
Bank One, Indianapolis
Valley American Bank, South Bend
1st Source Bank, South Bend
Midwest Commerce Bank, South Bend
Trustcorp, South Bend
First Interstate Bank, South Bend
Mrs. Kolata summarized the proposals for both the parking facility and
stadium. The Bond Trustee, Bond Registrar and Paying Agent receives the
bond proceeds and pays the bills as they come in. She noted that during
construction, there are more responsibilities and administrative duties to
perform. All of the banks submitting bids provided background on their
expertise in bond and asset administration and lack of qualifications was
not an issue in the decision.
There were three types of fees/charges in all of the bids: (1) an initial
fee, (2) an annual fee during the life of the bond, and (3) administrative
fees on individual transactions. All proposals indicated that they would
.charge reimbursable expenses. Mrs. Kolata indicated that using a local bank
...for the garage trustee would minimize these reimbursables, particularly
during the construction phase. Mrs. Kolata indicated-.that it would .also be
advantageous to use the same bank for both the garage and stadium. The
schedule for the financing of the parking garage is being revised so that
the, the financing of the garage and refinancing of the stadium will be on
the same schedule and the bonds for each will be sold at the same time.
Mrs. Kolata indicated that the staff was recommending that the Authority
hire. First Interstate as the Bond Trustee, Paying Agent and Registrar for
the following reasons: (1) They currently service a number of large bond
issues, such as hospitals., .schools, civic. centers, etc. so are experienced
in this field. (2) Their rate is an hourly rate. (3) The fees for
specific services were low. Also, First Interstate put together an
estimated cost for servicing each project and these estimates were in line
with the other bids.
Mr. Varga asked whether Bond Counsel, Baker & Daniels, had the same
reconBnendation. Mrs. Kolata responded that the staff consulted with Bond
Counsel. and .they concurred-with the. recommendation.
Mr. Varga noted that First Interstate's bid for .the garage included a higher
charge than the others for the period during construction. He wondered if
the cost effectiveness of using the same bank for both financings was
.significant enough to outweigh that higher charge. Mrs. Kolata indicated
that the efficiencies could be significant. Two sets of banks with two sets
of attorneys would mean significantly more negotiating .for Bond Counsel and
would increase. what we pay Bond Counsel.
Mr. Varga asked if First Interstate would be administering the bonds
locally. Mrs. :Kolata responded that they would be.
Upon a motion by Mr. Davey, seconded by Mr. Wroblewski and unanimously
carried, the Authority accepted the First Interstate Bank bid to be Bond
Trustee, Bond Registrar and Paying Agent for the St. Joseph/Wayne Parking
Facility.
4. Authority selection of Bond Trustee, Bond Registrar and Paying Agent for the
Stanley Coveleski Regional Stadium.
Upon a motion by Mr. Wroblewski, seconded by Mr. Davey and unanimously
carried, the Authority accepted the First Interstate Bank bid to be Bond
Trustee, Bond Registrar and Paying Agent for the refinancing of the Stanley
Coveleski Regional Stadium.
Mr. Varga asked that the staff express appreciation for the effort each of
the banks put into .making their bid.
Mr. Varga also requested that the staff indicate to First Interstate that
they were selected for both projects because of the .expected efficiencies to
be realized with one bank administering both projects.
.. - , , -~
Authority approval requested for application for a building .permit for the
St. Joseph/Wayne Parking Facility.
Mrs. Kolata explained that the application for a building permit was
prepared by Walker Parking Consultants and reviewed by the Department of
Engineering. As the owners of the facility, the application .must be signed
by the Authority.
Upon a motion by Mr. Davey, seconded by Mr. Wroblewski and unanimously
carried, the Authority approved the application for a building permit for
the St. Joseph/Wayne Parking Facility.
6. Set Next Meeting
Mr. Nussbaum noted that the Authority had obtained a recommendation for
approval from the Local Property Tax Control Board and approval from the
State Board of Tax Commissioners to approve the lease between the
Redevelopment Authority and the Redevelopment Commission for the refinancing
of the Stanley Coveleski Regional Stadium.
Mrs. Kolata explained that the staff is making minor revisions on its
internal timetable for the garage financing. The Local Property Tax Control
Board has changed their next meeting from June 17 to June 10 so we will be
going. before .that board with estimates instead of final figures. The Board
of Public Works will be receiving construction-bids on June 13 and awarding
the bid later that week. We would like to set the next meeting for 8:00
a.m. June 17 in order to take several final actions prior to the bond sa
Mr. Davey indicated that he would not be able to attend on June 17. A
decision on the next meeting date was postponed until Mr. Davey could
confirm his schedule.
7. Adjournment
le.
There being no .further business to come .before the Authority, Mr. Davey made
a motion that the meeting be adjourned. Mr. Wroblewski seconded the motion
and the meeting was adjourned at 8:45 a.m:
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Thomas Var a Jr., President E. Kolata, Deputy Executive Director
A