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HomeMy WebLinkAbout1989-11-16- Minutes SOUIH STD REDEVEIAPMEI~Fr AifliiORITY SPECIAL MEETING November 16, 1989 1200 County-City Building 4:00 p.m. 227 W. Jefferson Boulevard Presiding: Joseph Wroblewski So~.tth Bend, Indiana 46601 Vice President The November 16, 1989, Special Meeting of the Redevelo~nt Authority was called to order at 4:00 p.m. by its Vice President, Joseph Wroblewski. Zhere was a quorum present. 1. Roll Call Members Present: Mr. Joseph Wroblewski, Vice President Mr. George McCullough 1 : Mr. Richard Nussbaum II Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager C-thers: Mr. Don Porter, South Bend Tribune 2. Approval of Minutes a. A1x~roval of Minutes of the Special Meeting of September 22 1989 Upon a motion by Mr. McCullough, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the Minutes of the Special Meeting of September 22, 1989 3. New Business a. Mrs. Kolata asked the Authority to table this item, since negotiations on the amt have not been completed. Item 3.a. was tabled. b. Limited Partnership dba Century Plaza Office Building. • Mrs. Kolata noted that this aunt is related to the skywalk that is to be built between the IBM building and the St. Joseph/Wayne parking garage. The Redevelopment Authority will construct the walkway and will make structural changes to the building to allow the walkway to be built. The agreement gives easements for the walkway to be constructed over .the alley, an easemntt for the skywalk to be attached to the IBM building, and a right of access for pedestrians to walk across it. It outlines the responsibilities of all parties to the agreement. -1- • South Bend Redevelopment Authority Special Meeting - November 16, 1989 6. NEW BUSINESS (Cont.) b. continued... The owner of the building is required to do the interior finish work to the building. She showed plans for connec.-ting the walkway to the IBM building. There will be a hallway constructed along the west side of the third floor of the IBM building to allow public access to both the garage skywalk and the skywalk connecting the IBM building and Trustcorp Bank building. The owner of the. building is responsible for day to day maintenance anti operation of the skywalk. The Redevelopmment Authority will be responsible for major repairs. There is no heating or air conditioning in the skywalk, only ventilation. the ventilation system will be connected to utilities in the ICI building. They will be responsible for locking and unlocking the doors, and can, upon written approval, institute other security measures. No signs or advertising will be allowed on or in the skywalk. The Redevelopment Coaanission will provide insurance, as will Carnbined Capital. The Board of Public Works must approve the agreement, as well as the Authority and the Redevelop~ruent Ccenmtission. • Mrs. Kolata noted that we are using the remainder of the bond proceeds that built the parking garage to construct this walkway. She noted that the term of the agreement is twenty and one half years, beginning the date the garage is cc~a~rpleted and ready for occupancy. Mr. Nussbaum noted that the agreement was prepared by the City Attorney's office and. commended Carolyn Pfotenhauer for her work on it. Upon a motion by Mr. McCullouc~, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the Walkway Construction, Easement and Operating Agreement with Combined Capital Associates VII, an Indiana Limited Partnership dba Century Plaza Office Building. c. Develot~merit Area Public Improvement Proiect) . Mrs. Kolata noted that this item relates to item 3.e. Since the Redevelopment Authority will be issuing the revenue bonds, it is the Authority which will require bond counsel. Baker and Daniels has served us as bond counsel since 1985 and has done an excellent job preparing the bond doctmtents. We strongly recoa~end that the Authority hire them for this bond issue. Mr. McCullough asked what the fee would be. Mrs. Kolata responded that • there was no estimated fee. Mr. Nussbaum noted that there are so many contingencies in a bond issue, it would be difficult to set a flat fee. It -2- . South Bend RedevelopanPazt Authority Special Meeting -November 16, 1989 6. NEW .BUSINESS (Cont.) c. continued... is not unusual to handle it in this fashion. 'They submit a record of time acid expenses with their bill. Mrs. Kolata assured the Authority that on 'the bond issues that Baker and Daniels has done for us in the past they have always written off a portion of their time and have been more than fair with us. Upon a motion by Mr. McCullough, seconded 'by Mr. Wroblewski and unanimously carried, the Authority authorized hiring Baker and Daniels as bond counsel for the South Bend Redevelopment Authority Lease Rental Revenue Bonds. d. Authority authorization requested to hire financial advisor for the South Bend Redevelopment Authority Lease Rental Revenue Bonds (South Bend Central Development Area Public Improvement Project). Mrs. Kolata noted that we intend to hire Springsted Inc. as the financial advisor for the bond issue. They have done the financial analysis for this bond and have been our financial advisors on other redevelo~xnent bond issues since 1985. They have a thorough understanding of the tax i~rement that we are using for the bond issue. However, we do not have the contract • ready to sign today. She asked the Authority to table this item. Item 3.d. was tabled. e. Authority approval requested for Resolution No 14 entitled "Resolution of the South Bend Redevelopment Authority indicatina its intent to issue Redevelopment Authority Revenue Bonds, approving a proposed lease for Redevelopment Commission as lessee approving plans specifications and cyst estimates for the proiect and ratifying and confi~++;ng a certificate authoriziria the intent of the South Bend Redevelopment Authority to be reimbursed for preliminary project costs from proceeds of bonds to be issued." Mrs. Kolata explained that the Authority is considering Resolution No. 14 which does three things: 1) states the Authority's intention to issue bonds; 2} ratifies and. confirms the fact that same money has been spent preparing for the bond issue and that when the bond is sold the Authority will reimburse the ac,:counts that those funds have came out of; 3) approves plans, specifications and cost estimates for the projects and approves the proposed lease. She explained the projects that are planned. Mrs. Kolata noted that this is not the final form of the lease. We know that it will have to be amexided. Some of the projects may be dropped if the costs are higher than our estimates or if we cannot secure certain agreemexits from the adjacent property comers. -3- • South Bend Redevelopment Authority Special Meeting - November 16, 1989 6. NEW BUSIlJESS (Cont. ) e. continued... The first project is Niles Avenue construction, which includes r~onstruction of Niles Avenue frcem north of LaSalle Street to Washington Street and improvements to the north part of the Redevelopment cxnmed parking lot used by the E~~poritunr new curbs, walks, traffic islands, public Parking areas, trees, lighting, drainage and related work. The estimated cost of this project is $610,200. The second project is Madison Street parking and laix3scaping improvements between Niles Avenue and the East Race. It includes riew curb, gutters, Par'~~J ~'~. walks, trees, lighting, drainage, and repair and leveling of the brick street on Madison. The total distance involved is 335 linear feet. 'Ihe estimated cyst of the project is $314,500. 'Ihe third project is improvements to Washington Street between Niles Avenue and Hill Street, approximately 320 linear feet. The improvements would include rehabilitating aril relaying the existing brick roadway, the construction of new concrete curbs, gutters, parking areas, and traffic islands, and the addition of trees, lighting and drainage. The estimated cyst of the project is $249,900. Mrs. Kolata noted that when those three projects are completed, we will have added approximately 400 parking spaces along Niles Avenue and in the East Bank Area, the equivalent of a parking garage. The fourth project is the Riverbank Lighting project. It includes improvements to the lighting fixtures on the west side of the river between LaSalle Street and Karl King Towers. A number of the fixtures and poles in this area have deteriorated, been damaged, or are hidden by trees. This project would improve the lighting, making the area more secure. The estimated cost of this project is $128,800.. The fifth project is Morris Civic Plaza Img~rovements. It includes reconstruction of existing improvements and construction of new improvements. It includes partial demolition of the existing plaza, reducing the height of the brick walls, and creating same seating areas. Although the park is attractive, it is not a "people place." The improvements may include some reworking of the fountain, the brick areas and the lights. The estimated cost of this project is $456,350. The sixth project is construction of the Hcxaard Park Wall. The concrete wall along the St. Joseph River at Howard Park is severely deteriorated. The project would involve tearing out the existing wall and constructing a new wall of approximately 1000 linear feet. It would also involve capping the foundation of that wall and installing rip-rap at the base of the wall to protect the base from the effects of the river. It also includes the . replacement of some sidewalk next to the wall. The cost of this project is estimated at $288,200. -4- • South Band Redevelopment Authority Special Meeting - November 16,.1989 6. NEW BUSINESS (Cont.) e. continued... The seventh project i.s the. construction of a walkway along the Rink Riverside property. All of the East Bank and. the downtown are connected by riverfront walkways with the exception of the portion behind Rink Riverside Printing. This project would constructthe missing portion between the alley by the doctor's office to Colfax Street, at grade level, approximately 230 linear feet. It would also include the repair or demolition of the chimney on the Rink Riverside building. The estimated cost of this project is $275,000.. The eighth project is Viewing Park. The .project would include continuing the walkway at Ha~an3 Park down to Sample Street, repair of the old WPA wall and amphitheater, putting in same lighting, and making improvements to the driveways grid parking area. The estimated cost of this project is $165,°203. The ninth project is a variety of curb and sidewalk improvements in the downtown. Mrs. Kolata noted that some of these projects may not be done. We are interested in splitting the costs of curb and sidewalk improvements with the owner of adjacent property and in using curb and sidewalk • improvements to leverage other private improvements. We would not necessarily invest our money if woe could not get such cartmnitments from the PAY owners. The sections of curb and sidewalks proposed to be repaired are as follaws: approximately 55 linear feet in front of the City parking lot on Lafayette Street; along Lafayette Street from where the Valley American Bank drive-in ends to behind the Bath Building; approximately 35 linear feet along the property at 312 W. Colfax; along PTL Tire Service on Colfax; along the front of the. Colfax 'Theater; along both sides of the Christman Building; along LaSalle and Main Streets next to the South Bend Parking Lot north of the Christman Building; along Washington Street adjacent to Business Systems, Van Horne Jewelers, and Fannie Mae Candy Store; a section in front of the Summit Bank at Colfax and Main; and approximately 198 linear feet in front of the Trigon Building at Lafayette and Jefferson. The estimated cost of our portion of all of this curb and sidewalk work is $91,000. The last project i.s Monroe park acquisition. It is divided into three categories: 1) eight parcels that are vacant land; 2) eleven properties that have houses and the clearance of those houses; 3) eleven parcels with houses where we would have rehab of the houses. The estimated cast of the Monroe. Park project is $770,000. Mrs. Kolata noted that we have begun the acquisition using C.armminity Development Block Grant funds which we will reimburse with bond funds when they are available. The total cyst of all projects is estimated at $3,349,153. Mrs. Kolata • noted that to arrive at these estimates, a generous contingency was added to the contractors' estimates because we did not want to underestimate the cysts. -5- • South Bend Redevelopment Authority Special Meeting -November 16, 1989 6. NEW BUSIl~iESS (Cont. ) e. continued... Mrs. Kolata noted that the estimated bond issue is $4,895,000. We have used generous estimates for all cysts associated with the bond because the projected lease payments can be reduced but not increased once the process has been started. The lease provides for the Redevelopanerit Authority to acquire the Property and lease it to the Redevelopment Coanni.ssion. Sarre of the propexty will came froam the Park Department to the Authority and spine will came from the Board of Public Works. to the Authority. The Commission will use excess tax increment to make rental payments to the Authority. Giese rental payments will be used by the Authority to make the semi-annual bond payments, beginning in July 1991. The maxim~nn semi-annual lease payment is $295,500. She pointed out that these are proposed, maximum I~Y~nts• We expect that when the final rnunbers are plugged into the lease that the payments will be less than. that. We have used high construction costs and high interest rate figures and high lease payments in the document so that we can start the process. Once the process is begun, it is possible to lower costs and the semi-annual payment, but not raise them. Mrs. Kolata explained that the bonds will be paid back with tax increment that is currently in the incceme stream of our other projects. There are three revenue bonds and the parking garage that are currently being paid with tax increment. No taxes will be levied to pay for this. bond, but we will seek the ability to levy taxes if there is ever a shortfall. This fall back option allows us to have less coverage and to make better use of the tax increment. The next step in the process is for the Redevelopment Commission to approve the lease at a meeting on November 17th and to set a Public Hearing on the project for December 8th. Then the City Council will. consider the proposed lease. If the Council approves the proposed lease between the Ccarnnission and the Authority, the proposed lease will be considered by the State Tax Board, probably in late January. Also, after Conmion Council approval, the projects will be put out for bid with the Board of Public Works to get actual construction estimates. Ztie bond sale will probably not take place until MarcYi 1990. We expect the construction estimates, the bond size, the semi-annual lease payment, and other cysts related to the sale to be less than the projected figures listed in the form of lease. The term of the bond is proposed as twenty-two years. Mrs. Kolata noted that the staff has done some very detailed work on a tight timeline to have this ready for the Authority at this meeting, including writing scene of the legal descriptions. She noted that Martha Lantz, secretary for the Redevelopanerit staff, came in on Novembex 10, a holiday for the office, to type all of the legal descriptions for this lease. She did a very accurate job and the sacrifice of her holiday was . much appreciated. -6- South Bend Redevelopment Authority Special N~eeting -November 16, 1989 6. NEW BUSINESS (Cont.) e. continued... Mrs. Kolata noted that some of these plans are preliminary. For example,. we have three possible designs for the Howard Park wall. We may find that it is not possible to do all of the projects. She noted that projects may be dropped after the form. of lease is approved. Mr. McCullough asked if it would throw things off schedule if this item were tabled wltil the next meeting. Mrs. Kolata responded that it would throw the schedule off. The Redevelopment Conani.ssion will be considering the same items at its meeting the mornuzg of November 17th. Mr. Nussbaum noted that approval of this resolution allows the process to begin. It does not mean that all of the projects explained today will be done. There is plenty of opportunity for public input and reconsideration at the R~edevelopenent Ccarmiission public hearing, at the Connnon Council meeting .when this. item is considered and when it goes before the State Tax Bonnd. Mrs. Kolata agreed that there is plenty of opportunity for revision. The only thing that cannot be done is to ixicrease the lease payment. • Upon a motion by Mr. McCullough, seconded by Mr. Wroblewski and unanimously carried, the Authority approved Resolution No. 14 indicating its intent to issue Redevelopment Authority Revenue Bonds, approving a proposed lease for c~xtain public improvements, property acquisition and redevelopment between the South Bend Redevelopment Authority, as lessor, and the South Bend Redevelopment Ccgrnnission, as lessee, approving plans, specifications and cysts estimates for the project and ratifying and confirming a certificate authorizing the intent of the South Bend Redevelopment Authority to be reimbursed for preliminary project c~stS from proceeds of bonds to be issued. 4. AL1T0[JR1~LV'I' There being no further business to cane before the Authority, Mr. McCullough made a motion that the meeting be adjourned. Mr. Wroblewski seconded the motion and the meeting was adjourned at 4:55 p.m. J lewski., Vice President //~ ,~'? ~ 4l J~~ j .Ann E. Kolata, Director -7-