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HomeMy WebLinkAbout1988- 06-26 Minutes.. SOUTH BEND REDEVELOPMENT AUTHORITY • SPECIAL MEETING July 26, 1988 1200 County-City Building 12.00 noon 227 W. Jefferson Boulevard • South Bend, Indiana 46601 The July 26, 1988 Special Meeting of the Redevelopment Authority was called to order at 12:05 p.m. by its President, Thomas J. Varga, Jr. There was a quorum present. 1. Roll Call • Members Present: Legal Counsel: Redevelopment Staff: Others: Mr. Thomas J. Varga, Jr. Mr. Chris Davey Mr. Joseph Wroblewski Mr. Richard A. Nussbaum, II Mrs. Ann Kolata, Deputy Executive Director Mrs. Cheryl Phipps, Office Manager Mr. Jon Hunt, Executive Director Mayor Joseph E. Kernan Ms. Katherine Humphreys, Controller Ms. Carolyn Pfotenhauer Mr. John Farron, Raffensberger Hughes Mr. Henry Schricker, Valley American Bank Mr. Richard Treptow, Springsted Inc. Ms. Loren .Rooney., Springsted Inc. Mr. Joe Garrett, City Securities Mr. Thom Howell, U-93 Radio Mr. F. Jay Nimtz, Redevelopment Commission Mr. Richard L. Hill, Parker & Jaicomo 2. Approval of the Mintues of the Special Meeting of July 8, 1988 Upon a motion by Mr. Wroblewski, seconded by Mr. Davey and unanimously carried, the Authority approved the Minutes of the Special Meeting of July 8, 1988. 3. Opening and award of bids for the South Bend Redevelopment Authority _r~ease Rental Revenue Bonds (Parking Facility Projct). Mr. Varga stated for the record that the time was 12:06 p.m. and that the bids were requested by 12:00 noon on that date. Mrs. Kolata introduced Mr. Richard Treptow from Springsted, Inc., the financial advisor to the Redeveloxxnent Authority. Mr. Treptow stated that there were five (5) bids • for the Parking Garage Facility project and four (4) bids for the Coveleski Stadium project which is a refinancing of that project. Both of the issues -1- -~ .. were rated by Moody's Investment Service in New York. The rating on the • Parking Facility project is what is .called a "Conditional A" rating. A rating of "A" represents the city rating, the fact that it is conditional is .based on the fact that the garage is not yet constructed. Once it is constructed, the conditional aspect of that rating will be removed. Mr. Treptow then went on to open the bids. Bids were received for the Lease-Rental Revenue Bonds for the Parking Garage from: Net Interest Net Interest Syndicate Head Dollar Cost Rate Blunt Ellis & Loewi, Chicago $4,758,703.30 7.788% Prudential Bache $4,803,245.35 7.8609% Merrill Lynch, Chicago $4,760,437.50 7.7909% Bank .One, Indianapolis $4,757,968.75 7.7868% City Securities $4,766,848.75 7.8013% Mr. Treptow stated that the apparent best bid was that submitted by Bank One. The bids have to be checked for mathematical accuracy and to be sure they don't violate any of the other bidding terms, especially the one that limits the total annual payments to $518,000.00.. This will be checked by • computer in Springsted's home office. Mr. Treptow stated that there were two (2) bids submitted locally from Bank One and City Securities and both were accompanied by good faith checks. In the case of the three bids that he carried in, the good faith checks are on file at Springsted. Mr. Davey stated that-the apparent low bidder is Bank One and he awarded the bid to Bank One subject to verification of accuracy of the bid and also compliance with the maximtnn semi-annual payment requirement. 4. Opening and award of bids for the South Bend Redevelopment Authority Lease Rental Revenue Bonds (Coveleski Stadium Project). Mr. Treptow stated he was especially pleased to have four (4) bids for this issue since this is a taxable bond. The rating for this issue is "A". This is not a conditional rating because the stadium is already completed. Bids were received for Coveleski Stadi~n project from: Net Interest Net Interest Syndicate Head Dollar Cost Rate M Bank, Dallas TX $2,815,893.13 9.8174610 Griffin Kubik Stephens & Thompson $2,771,578.75 9.66291% • Bank One $2,744,409.00 9.5682% Raffensberger Hughes $2,782,801.65 9.702089% -2- Mr. Treptow stated that there were two (2) bids submitted locally from Bank One and Raffensberger Hughes and both were accompanied by good faith checks. In the case of the two bids that he carried in, the good faith checks are on file at Springsted. Mr. Davey stated that the apparent low bidder is Bank One and he awarded the bid to Bank One subject to verification of accuracy of the bid and also compliance with the maximum semi-annual payment requirement. Mayor Kernan asked if Mr. Treptow could determine the savings on the stadium financing compared to .the present stadium financing. Mr. Treptow said that Springsted will make that calculation. Mrs. Kolata stated that Mr. Treptow will call the Springsted office to verify the numbers in the Bank One bids and the Redevelopment Authority will wait to ratify the award of the bids until those calculations are complete. The good faith depoit checks submitted by City Securities for the parking garage and by Raffensberger Hughes for the staditnn were returned to Mr. Garrett and Mr. Farron respectively since their bids were not accepted. Mayor Kernan thanked the Redevelopment Authority for their work on these.-two issues. Mr. Treptow returned to the meeting and stated that both Bank. One's bids were verified and the savings on the stadium refinancing was $389,000. • .Mrs. Kolata stated that the next order would be for the Authority to have a motion to ratify the award of the bids by the Secretary, first for the parking garage and then for the stadium. Mr. Wroblewski made a motion to ratify the award of the bid for the South Bend Redevelopment Authority Lease Rental Revenue Bonds on the parking facility to the verified-low bidder, Bank One, which was seconded by Mr. Varga and unanimously approved. Mr. Wroblewski made a motion to ratify the award of the bid for the South Bend Redevelopment Authority Lease-Rental Revenue Bonds for Coveleski Stadium to the verified low bidder, Bank One, which was seconded by Mr. Varga and unanimously approved. 5. Other Mr. Varga stated that the next meeting of the Redevelopment Authority will be July 29, 1988, at 8:00 a.m. for the purpose of amending the leases for the projects. • -3- ,. ~ . 6. Adjournment • There being no further business to cane before the Authority, Mr. Wroblewski made a motion that the meeting be adjourned. Mr. Davey seconded the motion and the meeting was adjourned at 12:50 p.m. Thomas J Var , Jr., President Ann E. Kolata, Deputy Executive Director • -4-