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Home My WebLink About1988-06-17 Minutest SOUTH BEND REDEVELOPMENT AUTHORITY SPECIAL MEETING June 17, 1988 1200 County-City Building 8:00 a.m. 227. W. Jefferson Boulevard South Bend, Indiana 46601 The June 17, 1988 Special Meeting of the Redevelopment Authority was called to order at 8:05 a.m. by its President, Thomas J. Varga, Jr. There was a quorum present. 1. ROLL CALL Members Present: Members Absent: Legal Counsel: Redevelopment Staff: News Media: Other s. 2. APPROVAL OF MINUTES Mr. Thomas J. Varga, Jr., President Mr. Joseph Wroblewski, Vice President Mr. Chris Davey, Secretary Mr. Richard Nussbaum II Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Mr. Chris Henderson, WSBT-TV Ms. Katherine Humphreys, Controller Mr. Varga asked whether the banks whose bids for Bond Trustee, Bond Registrar and Paying Agent were not accepted were notified. Mrs. Kolata indicated that she had sent letters to them all. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously carried, the Authority approved the Minutes of the Special Meeting of May 27, 1988. 3. Adoption of Resolution No. 5, a Resolution of the South Bend Redevelopme Authority a proving modifications to and execution of a lease between th South Bend Redeveloprrlent Authority and the South Bend Redevelopment Commission for the St. Joseph/Wayne Parking Facility and regarding other related matters. Mr. Nussbaum noted that the form of the lease was approved at the April 14th meeting, without the actual- numbers. Conservative estimates were provided to the Authority at that time to determine the maximum cost of the bond. These conservative extimates are being inserted into the lease with this resolution. It is still possible that the actual numbers will be lower and reduce the cost of the bond. -1- outh Bend Redevelopment Authority pecial Meeting - June 17, 1988 3. Continued... Mrs. Kolata"noted that it will not be necessary to .come back to the Authority for approval of the substitution of lower numbers into the lease if the interest rate on the bond is lower than expected. Mrs. Kolata also noted that Resolution No. 5 approves the purchase of the land for the parking facility from the Redevelopment Commission for $1.00. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously carried,. the Authority .adopted Resolution No. 5 approving modifications to and execution of a lease between the South Bend Redevelopment Authority and the South Bend Redevelopment. Commission for the St.'Joseph/Wayne Parking Facility and regarding, other. related matters. 4, Adoption of Resolution No. 6, a Resolution of the South Bend Redevelo nt Authority authorizing :the issuance of the South Bend Redevelopment Authorit Lease Rental. Revenue Bonds (Parking Facility Pro~ectl_ Mr. Nussbaum noted that an Official Statement will be prepared so that the prospective bond holders will have notice about the bond sale. Mrs. Kolata noted that the Trust Agreement with. First Interstate Bank is an attachment to this resolution. The Trust Agreement sets forth information required on the bonds and requirements related to the bonds, such as requiring the Authority to secure builders risk insurance during construction, setting up accounts and procedures for receiving and paying construction bills, and the procedure for making principal and interest payments. The Trust Agreement will be signed at bond closing. Mr. Varga noted that this issue is expected to be tax exempt. The numbers provided are based upon that assumption. The bidders on the bonds will be given the benefit of call protection through February 1, 1998. This should add to the marketability of the bonds. The bonds will be serial maturity bonds which will allow a (fairly) fixed principal and interest payment. He also noted that the Authority still has the right to reject the .financing,. which would effectively kill the project, if the numbers that we receive are such that it is not feasible to proceed with the project. Mr. Varga asked Mrs. Kolata to explain the $4,575,000 bond figure including the $50,000 of extra costs. .She explained that the actual bid for construction of the garage was $3,200,000. We had asked for an estimate for adding brick facade to the other two .sides of the garage. That $30,000 estimate was considered worthwhile and is being added to the construction cost. However, the additional construction cost increased the cost of the 10% contingency. The remainder of the difference between the $3,200,000 and $3,980,000 is for finishing the retail space, paying the architect's fees and other necessary expenses over and above the actual construction costs. This $780,000 should be sufficient and any extra .will be applied to principal and interest payment(s). -2- outh Bend Redevelopment Authority pecial Meeting -June 17, 1988 4. Continued... Mrs. Kolata noted Ghat the. payment schedule provided is based on current rates and will be recalculated after the bond is sold. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously carried, the. Authority approved Resolution No. 6 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds-for the Parking Facility Project. 5. Authority approval requested Parking Facility Project for Notice of Bond Sale on-July to schedule Bond Sale for the. St. J~ July 26, 1988_ and to authorize publ: .and July 8, 19AR_ Upon a motion by Mr. Varga, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the July 26, 1988 date for the Bond Sale for the St. Joseph/Wayne Parking Facility Project and authorized publication of Notice of Bond Sale on July l and July 8 , 1988. 6. Adoption of Resolution No. 7, a Resolution of the South Bend Redevelopment Authority approving modifications to and execution of a lease between the ;.South Bend Redevelopment Authority and the South Bend Redevelopment Commission for the Stanley Coveleski Regional Stadium and regarding other related matters. Mr. Nussbaum explained that Resolution No. 7 puts the estimated $1,000,000 annual rental payment into the previously approved form of lease. The Trust Agreement allows any future changes to the estimated figures which will lower the annual payment. He noted that the issue of the stadium bonds being taxable or tax exempt has not been resolved. The bonds will be sold as taxable but may be called. at any tune for refinancing as tax exempt . Mrs. Kolata noted that the lease provides for the Commission to complete the purchase option at any point during the term of the lease. If they do not exercise that option by the end of the term of the lease, the Authority will convey the stadium to the Commission at that time. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously carried, the. Authority adopted Resolution No. 7 approving modifications to and execution of a lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for: the Stanley Coveleski Regional Stadium and regarding.-other related matters. 7. Adoption of Resolution No. 8, a Resolution of the South Bend Redevelopment Authority authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds (Coveleski Stadium Project}. Mr. Nussbaum noted that Resolution No. 8 includes as an attachment the Trust Agreement with First Interstate Bank. The numbers in the lease are conservatively-high and may be lowered after the bond sale. -3- outh Bend Redevelopment Authority pecial Meeting - June 17, 1988 7. Continued... Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and unanimously. carried, the Authority adopted Resolution No. 8 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Bonds for the Stanley Coveleski Regional Stadium. 8. Authority approval requested to schedule Bond Sale for the Coveleski Stadium Project for July 26, 1988 and to authorize publication of Notice of Bond Sale on July l and July 8, 1988. Mr. Nussbaum noted that the closing on the bond sale .will be a different date than that of the parking facility. September I, 1988 is the date our next lease payment is due to Security Pacific-and it would be a clean transaction to close on that date.. Upon a motion by Mr. Wroblewski, seconded by Mr. Varga and .unanimously carried, the Authority approved the July 26, 1988 date for the Bond Sale for the Coveleski Stadium Project and authorized publication of Notice of Bond Sale on July 1 and July 8, 1988. 9. Set Next Meeting `Dates: Tentative Dates July 1 and July 26,-1988 Mr. Nussbaum noted that the purpose of the July 1 meeting would be to approve the Official Statement for each project. The purpose of the July 26 meeting would be for the sale of the bonds. 10. .Other Mr. Varga asked how the presentation before the Local Property Tax Control Board on the St. Joseph/Wayne Parking Facility went. .Mrs. Kolata responded that the presentation went well. There-were questions about maintenance of the garage. The Board was assured that the garage has been designed to minimize operation and maintenance costs. The State Board of Tax Commissioners-gave its approval on June 14. 11. Adjournment There being no further business to come before the Authority, Mr. Wroblewski made a motion that the meeting be adjourned. Mr. Varga seconded the motion and the meeting was adjourned at 8:30 a.m. Thomas J. Varga°Jr., President E. Kolata, Deputy Executive Director -4-