Loading...
HomeMy WebLinkAbout1990-08-02 minutes SOUTH EEDID RIDEVELOPMENT AUTHORITY SPECIAL MEETING August 2, 1990 1200 County-City Building 3:30 p.m. 227 W. Jefferson Boulevard Presiding: Joseph Wroblewski South Bend, Indiana 46601 President The August 2, 1990, Special Meeting of the Redevelopment Authority was called to order at 3:36 p.m. by its President, Joseph Wroblewski. There was a quorum present. 1. Roll Call Members Present: Members Absent: Legal Counsel: Redevelopment Staff: Media: Mr. Joseph Wroblewski, President Mr. Don Fewell, Vice President Mr. Geon~e McCullough, Secretary Ms. Caroly:~ Pfotenhauer Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Don Porter, South Bend Tribune Ms. Heather Richards, U-93 2. Authority approval of Minutes of the Special Meeting of May 15, 1990. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Minutes of the Special Meeting of May 15, 1990 were approved. 3. Old Business a. Authority approval requested for Walkway Construction, Easement and g~erating Agreement with Michic,~an Street Building Partnership. Mrs. Kolata explained that this agreement is for the building and operation of a walkway between the St. Joseph/Wayne Street Parking Garage and the former Penney's Building. Mrs. Kolata noted that the Redevelopment Connnission and the Board of Public Works have already approved this agreement. The agreement is substantially the same as the agreement between the Commission and Combined Capital for the walkway between the garage and the IBM Building. It provides access to the tenants in the form of an easement for as long as the building and walkway exist. The Commission and Authority will be responsible for structural maintenance of the walkway and the owners will be responsible for interior maintenance. ,• Mr. Fewell asked when the walkway will be completed. Mrs. Kolata responded that it has been completed. It is not in operation because the nightclub has not been completed. Mr. Fewell asked what the projected completion date is for the nightclub. Mrs. Kolata responded that we expect them to bring their plans in for building department review on August 3rr1. They have applied for State permits. It will not be complete for at least a couple of months. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the Walkway Construction, Easement and Operating Agreement with Michigan Street Building Partnership. 4. New Business a. Authority authorization to file for tax abatement for retail space in the St. Joseph/Wayne Street Parking Garage. Mrs. Kolata noted that since the users of the retail space in the parking garage will be private users, they will be responsible for property taxes. Catering by Billie, Inc. has leased Retail Space No. 1 and would like to receive three years of tax abatement, for which they qualify. Since the Authority is the c~uner of the space, the Authority must sign the tax abatement application on behalf of Catering by Billie and for Retail Space No. 2. Mr. Fewell asked if the improvements being done in that space right now are for Catering by Billie. Mrs. Kolata responded that the build out is being done in both spaces. We agreed to finish the spaces to a certain level. That work will be paid for from bond proceeds. The same contractor is doing that work as well as the tenant finishes for Catering by Billie, which Billie's will pay for. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority authorized the filing of a tax abatement application for retail space in the St. Joseph/Wayne Street Parking Garage. b. Authority approval requested for Resolution No. 23, a resolution of the Redevelopment Authority establishing its intent to issue Redevelopment Authority Revenue Bonds and that certain preliminary redevelopment cysts be reimbursed from the proceeds of said bonds. Mrs. Kolata noted that the Redevelopment Commission recently declared the Airport Economic Development Area to be a new economic development area. The Redevelopment Commission is currently issuing a small revenue bond primarily to finance engineering work for road design of public improvements to be constructed in the area. We expect to ask the Redevelopment Authority to issue a lease purchase bond later this year to help fund the construction of the roads. Resolution No. 23 states that the Authority intends to issue that lease purchase bond and, if it does, sc¢ne of that bond money may be used to pay for preliminary, eligible costs associated with development of that area. 'I4ie resolution does not obligate the Authority to issue bonds nor to pay for any particular expenses. ,• • , ., Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority approved Resolution No. 23 establishing its intent to issue Redevelopment Authority Revenue Bonds and that certain preliminary redevelopment costs be reimbursed from the proceeds of said bonds. c. 1990 related to the South Bend Central Development Area. Mrs. Kolata explained that the Authority had previously entered into an agreement with Springsted to serve as financial advisor for the 1990 Lease Rental Revenue Bond. Their fee was to be based on the ntmtber of hours worked, not to exceed $30,000 plus expenses. The contract called for them to notify us if the cysts exceeded $30,000 to receive authorization to proceed. The $30,000 cap was established to try to limit costs, but it was probably unrealistic from the start. Mrs. Kolata noted that Springsted notified her earlier this year that they needed to go over that amount. The reason for their services on this bond requiring more time was due to the reassessment and to the complexity of the lease/purchase bond. Mrs. Kolata allowed Springsted to go ahead, but to provide information on their additional fees after the bond was completed. Mrs. Kolata explained .that the t made it necessary for Spri.rigsted to verify the revised base assessment for each piece of property in the development area and then verify the accuracy of the numbers they were working with. Mrs. Kolata noted that, because of the detailed work that Springsted did with the reassessment figures, we were able to issue a bond for $900,000 more than we expected. The final bill is $54,653.75. Additionally, expenses are billed at $6,629.14, including printing of the Official Statement, travel, computer time, telephone calls, etc. Mrs. Kolata stated that she had carefully reviewed the bill and the time spent on each aspect of their services and felt that it was justified. She noted that the cost is what Springsted originally felt it would cost them, and it is in line with what other cities are paying for financial services for similar size bored issues. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority approved an Amenchnent to Contract with Springsted Inc. for financial services related to the Lease Rental Revenue Bonds of 1990 related to the South Bend Central Development Area. 5. AUTC~iJRl~!' There being no further business to came before the Authority, Mr. Fewell made a motion that the meeting be adjourned. Mr. Wroblewski seconded the motion and the meeting was adjourned at 3:56 p.m. ~ . ~ ~ ~~~~ p W. Wroblewski, President Ariz E. Kolata, Director