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HomeMy WebLinkAbout1992-01-23 Minutes SOUTH BEND REDEVELOPMENT AUTHORITY SPECIAL MEETING March 26, 1992 1200 County-City Building 9.30 a.m. 227 W. Jefferson Boulevard Presiding: Joseph Wroblewski South Bend, Indiana 46601 President The March 26, 1992, Special Meeting of the Redevelopment Authority was called to order at 9:30 a.m. by its President, Joseph Wroblewski. There was a quorum present. 1. ROLL CALL Members Present: Mr. Joseph Wroblewski, President Mr. Andre Gammage, Vice-President Members Absent: Mr. Donald Fewell, Secretary Legal Counsel: Ms. Jenny Pitts-Manier Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Esther Deak, Recording Secretary Mrs. Hedy Robinson, Economic Dev. Specialist Media• Thom Howell, U-93 • Don Porter, South Bend Tribune 2. APPROVAL OF MINUTES a. Approval of Minutes of the Special Meeting of Thursda March 16. 1992. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the Minutes of the Special Meeting of Thursday, March 16, 1992. 3. OLD BUSINESS a. Authority approval requested for appraisal services in the Toll Road Industrial Park. Mrs. Kolata noted that at the last Authority meeting we had proposals from three appraisers for six parcels in the Toll Road Industrial Park, currently owned by the Industrial Foundation. We need to hire two appraisers for the work. At that meeting the Authority accepted the proposal from B. David Huntington and Associates, but asked the staff to get more information from Doug Carpenter and Doris Sante. -1- .~ South Bend Redevelopment Authority Special Meeting - March 26, 1992 3. OLD BUSINESS (Cont.) a. continued... Ms. Robinson explained that further inquiry indicated that Ms. Sante has had limited experience in industrial appraisals. Ms. Robinson~s question to Mr. Carpenter was related to his significantly lower bid, whether he would follow required appraisal standards. We have a letter from Mr. Carpenter that he will indeed follow those standards. The staff recommends accepting the proposal from Doug Carpenter for $1000. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski. and unanimously carried, the Authority accepted the proposal from Doug Carpenter for appraisal services in the Toll Road Industrial Park. b. Execution of Contract with North American Golf. Mrs. Kolata explained that at a previous meeting the Authority authorized the staff to hire North American Golf and to work out the details of the contract. Our attorney has now completed the contract. Ms. Manier noted that the scope of services and fee have remained the same. The. changes related to the language of the contract. Mrs. Kolata noted that the scope of services relates to soil boring, wetland definition, a phase one environmental audit, identifying the golf course site and location of holes, completing a topographic map, information on well capacity and analysis, and a preliminary replat of the area. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority approved execution of the Contract with North American Golf. 4. NEW BUSINESS a. Authori ~ approval requested for proposal from Baker & Daniels to serve as bond counsel for Palais Rovale Lease-Purchase Financing. Mrs. Kolata explained that items 4.a., 4.b., and 4.C. are related. They are tied to the purchase of the Palais Royale building. We expect to finance the purchase with . a Lease-Purchase bond to be sold by the Authority, backed by a Lease with the Redevelopment Commission. The actions today are the hiring of bond counsel, hiring a -2- South Bend Redevelopment Authority Special Meeting - March 26, 1992 4. NEW BUSINESS (Cont.) a. continued... bond trustee, approving a resolution indicating intent to sell bonds, and approving a Proposed Lease. We have come town unofficial agreement with-the owners of the Palais Royale concerning its purchase. The City presently 12 yrs remaining on its lease of the property, after which the property will still belong to the present owners. We want to bring the Palais under public ownership in order to renovate it along with the Morris Civic Auditorium. Through this Lease-Purchase the City will be able to convert its lease payment to the equivalent of a mortgage payment so that at the end of the term, the Authority will own it. The size of the bond is approximately $1.4 million, which includes the purchase price, issuance costs, and a contingency factor. The documents have been written to make the term 13 years, but it is our intent to pay it off in 12 years. We have also included a higher semi-annual payment than is currently being paid in rent. We expect that payment to be reduced when the actual interest rate is set. Following action today, the Redevelopment Commission will also approve the lease and a bond sale will take place in July. The Authority will send a purchase offer and the owners will respond to the offer, placing a deed in escrow until the bond closing when we have funds to make. the purchase. Mrs. Kolata also noted that the Entertainment District Board has been working with the architect for the renovation of the Palais and Morris and is nearing completion of the schematic drawings. They are about ready to enter into fundraising for the project and about to begin drawing the construction documents. Mr. Gammage asked if any bond money would be used for renovation of the .building. Mrs. Kolata responded that bond money would not be used for renovation. The City's contribution to the project includes the improvements already done to the plaza in front of the Morris Civic, hiring of the architect, and acquisition of the building. The rehab will be paid for from private fundraising. • Mrs. Kolata noted that Baker & Daniels has proposed to charge an hourly rate up to a maximum of $35,000. -3- South Bend Redevelopment Authority • Special Meeting - March 26, 1992 4. NEW BUSINESS (Cont.) a. continued... Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority accepted the proposal from Baker & Daniels to serve as bond counsel for the Palais Royale Lease-Purchase Financing. b. Authority approval requested for proposal from Norwest Bank to serve as Trustee for Redevelopment Authority Revenue Bonds Palais Royale Financing. Mrs. Kolata noted that we asked Norwest Bank to serve as Trustee for this financing. Their rates for this have been compared to rates we have had in the past for this service and they are favorable. We recommend hiring Norwest Bank. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority accepted the proposal from Norwest Bank to serve as Trustee for Redevelopment Authority Lease Rental Revenue Bonds, Palais Royale Financing. c. Authori ~ approval requested for Resolution No. 49 establishing its intent to issue Redevelopment Taxable Lease Rental Revenue Bonds and that certain preliminary redevelopment costs be reimbursed from the proceeds of said bonds and approving a Proposed Lease between the South Bend Redevelopment Authority and the South Bend Redevelopment Commission for certain land and improvements. Mrs. Kolata explained that the Lease is for the Palais Royale Building. The Authority will buy the building with the proceeds from the bonds and lease it to the Commission for a term not exceeding 13 years. The semi-annual rental installments would be $110,000 per payment beginning January 28, 1993. Responsibility for maintenance will rest with the Redevelopment Commission. After the bond sale the lease will be amended to reflect the actual payment based on the actual interest rate. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority approved Resolution No. 49 establishing its intent to issue Redevelopment Taxable Lease Rental Revenue Bonds and that certain preliminary redevelopment costs be reimbursed • from the proceeds of said bonds and approving a Proposed Lease between the South Bend Redevelopment Authority and -4- v South Bend Redevelopment Authority Special Meeting - March 26, 1992 4. NEW BUSINESS (Cont.) c. continued... the South Bend Redevelopment Commission for certain. land and improvements. d. Authority approval requested for Proposal from Delta Consulting Services Inc for fixture appraisals in the Airport Economic Development Area. Mrs. Kolata explained that there are three billboards on property we have purchased in the Airport 2010 area. We need to get appraisals on them so we can have them relocated. Delta has done work for the Commission in the past. They are industrial/commercial appraisers. Their proposal is for $3000. They will establish the new cost of a billboard, the depreciation, the remaining value and a moving estimate, which will give us two options to negotiate with the owners: buying or moving the billboards. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski • and unanimously carried, the Authority accepted the proposal from Delta Services Inc. for fixture appraisals in the Airport Economic Development Area. 5. APPROVAL OF CLAIMS S.B.C.D.A. PUBLIC IMPROVEMENT PROJECT Northern Indiana Public Service Company $ 5.00 TOTAL SBCDA PUBLIC IMPROVEMENT PROJECT AIRPORT TAX-EXEMPT BOND H. J. Umbaugh & Assoc. TOTAL AIRPORT TAX EXEMPT BOND AIRPORT TAXABLE BOND Cole Associates TOTAL AIRPORT TAXABLE BOND n $ 5.00 $ 975.00 $ 975.00 $3.321.00 $3,321.00 -5- • South Bend Redevelopment Authority Special Meeting - March 26,1992 5. APPROVAL OF CLAIMS (Cont.) Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority approved claims submitted March 26, 1992. 6. ADJOURNMENT There being no further business to come before the Redevelopment Authority, Mr. Gammage made a motion that the meeting be adjourned. Mr. Wroblewski seconded the motion and the meeting was adjourned at 10:00 a.m. • • sep Wroblewski, President Zi' l~ Ann E. Kolata, Director -6-