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HomeMy WebLinkAbout1990-08-30 Minutes. SOUTH BEND RIDEVEIAPN~N'r AUTHORITY SPECIAL MEER'TNG August 30, 1990 1200 County-City Building 4:00 p.m. 227 W. Jefferson Boulevard Presiding: Joseph Wroblewski South Bend, Indiana 46601 President The August 30, 1990, to order at 4:09 p.m. present. 1. Roll Call Members Present: Legal Counsel: • 2. Special Meeting of the Redevelopment Authority was called by its President, Joseph Wroblewski. There was a quorum Mr. Joseph Wroblewski, President Mr. Don Fewell, Vice President Mr. Richard J. Nussbaum, Jr. Redevelopment Staff: Media: Approval of Minutes Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Tha~m Howell, U-93 Mr. Don Porter, South Bend Tribune a. Authority approval requested for Minutes of the Special Meeting of August 2, 1990. Upon a motion by Mr. unanimously carried, 1990 were approved. 3. Communications Fewell, seconded by Mr. Wroblewski and the Minutes of the Special Meeting of August 2, a. Conmtunication from George W. McCullough Jr. Mr. Wroblewski noted that Mayor Kernan had received a letter of resignation from Geon~e McCullough, resigning from his position on the Redevelopment Authority. Mr. Wroblewski asked for a motion accepting the resignation. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority accepted the resignation of Geon~e W. McCullough, Jr. Mr. Wroblewski stated for the record that Mr. McCullough resigned because he had moved out of the City of South Bend. By law, members of the Authority must reside within the City limits. Mr. Wroblewski asked Mr. Nussbaum to send Mr. McCullough a letter of appreciation for his service on the Authority. A letter will be sent. 4. New Business a. Authority approval of Resolution No 24 approving a proposed Lease for certain land and public improvements between the South Bend Redevelopment Authority, as Lessor and the South Bend Redevelopment Commission. as Lessee and approving preliminary plans, specifications and cost estimates for the projects. Mrs. Kolata explained that Resolution No. 24 approves an attached Lease and approves the plans, specifications and cost estimates for projects to be paid for from the Lease/Purchase Bond. The Lease includes, as exhibits, a series of legal descriptions for property where the bond proceeds will be spent. The projects are in the Airport Economic Development Area. There are four major activities which are being proposed. Mrs. Kolata explained the four projects: 1) Financing the construction of internal roads in the Airport Economic Development Area to open up land for the business/corporate/office area. The proposal is to construct two loop roads into the area and to extend Mayflcxaer Road south of Old Cleveland Road for an estimated total of $4,237,000. ~J 2) Acquisition of approximately 10 parcels of land. Acquisition, relocation, and clearance is estimated to cost between $1.2 million and $1.6 million. 3) Extension of Viridian Drive and improvements to Viridian Lake. We propose to extend Viridian Drive approximately 200 feet. Viridian Lake is a man made drainage lake which was not completed by the Industrial Foundation. The estimated cost of the road extension is $160,000 and the improvements to the lake are estimated to cost $215,000. These improvements will open up more lots for business development. 4) Improvement of the intersection at Brick and New Cleveland Roads and extension of water, sewer and the construction of a sewage lift station at Brick and Cleveland. Penz Realty owns about 70 acres north of New Cleveland at Brick which they intend to develop into a light industrial park. The cost of these improvements is estimated at $150,000. We intend to apply to the state for a grant of $75,000 toward the cost of the improvements. The plans and specifications for these improvements were on hand at the meeting for inspection by anyone interested in looking at them. Mrs. Kolata noted that it may not be possible to do all of these projects with the bond proceeds. If not, some will be cut or altered, but it is necessary to have them described in the Lease if they are being considered. Over the next several months we will be refining cyst estimates to determine how much can be done. • Mrs. Kolata noted that this is a Lease/Purchase financing. The Lease is between the Redevelopment Authority and the Redevelopment Commission. The Redevelopment Authority will need to own all of the. property that money is being spent on. The term of the Lease is "not to exceed 22 years" to allow same flexibility. We expect the term of the Lease to be about 20 years. The maximum semi-annual rental installment is $900,000. The law requires that a maximum lease payment be established. The lease payments begin when the project is completed, or January 28, 1992, whichever is later. According to the payment schedule listed in the Lease, the payments are graduated. The first lease payment is estimated to be $143,400. Mrs. Kolata noted that we hope to have approval of the bond issue and the sale of the bond issue by the end of 1990. Mrs. Kolata noted that the Lease contains legal descriptions for all of the roads we hope to get state funding for. Even if we get state funding for construction, we will need to pay for engineering costs which was included in the $950,000 bond issue. In order to pay off that bond with the larger bond, the Lease must include the descriptions of those roads. Mr. Fewell asked if all of the land in the Airport Economic Development Area is within the City limits. Mrs. Kolata responded that the Economic Development Area coincideswith the City boundaries, but the planning area is larger. We are making plans to annex the . portions of the planning area that are not currently in the City. Upon a motion by Mr. Fewell, seconded by Mr. Wroblewski and unanimously carried, the Authority approved Resolution No. 24 approving a proposed L..ase for certain land and public improvements between the South Bend Redevelopment Authority, as Lessor, and the South Bend Redevelopment Cormnission, as Lessee, and approving prelim;nary plans, specifications and cyst estimates for the projects. 5. Adjourrunent 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 it was u~rianimously carried. The meeting was adjourned at 4:30 p.m. lam, n~s"~° ~~ E. Kolata, Director J ep W. Wroblewski, President