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HomeMy WebLinkAbout1992-06-26 minutes_. ~ SOUTH BEND REDEVELOPMENT AUTHORITY • SPECIAL MEETING June 26, 1992 1200 County-City Building 8.30 a.m. 227 W. Jefferson Boulevard Presiding: Joseph Wroblewski South Bend, Indiana 46601 President The June 26, 1992, Special Meeting of the Redevelopment Authority was called to order at 8:30 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 Mr. Donald Fewell, Secretary Redevelopment Staff: Mrs. Ann Kolata, Director Mrs. Cheryl Phipps, Office Manager Mr. Jon Hunt, Executive Director Legal Staff• Mr. Richard A. Nussbaum III • Ms. Jenny Pitts-Manier . Media: Mr. Don Porter, South Bend Tribune Others• Mayor Joseph E. Kernan Mr. Myron Frasier, H. J. Umbaugh & Assoc. Mr. Randy Rompola, Baker & Daniels Mr. Michael Rippey, North American Golf Corp Mr. Richard Bradford Mrs. Richard Bradford 2. APPROVAL OF MINUTES a, A roval of Minutes of the Special Meeting of Thursdav. June 18. 1992. Mr. Nussbaum asked that item 3.a. of the Minutes be corrected in the second and third paragraphs to show that Mr. Hill, not Mr. Nussbaum, noted that the Palais Royale bond was taxable and the term of the bond was 12 years. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the Minutes of the Special Meeting of Thursday, June 18, 1992, as corrected. b, A royal of Minutes of the Special Meetina of Tuesday. June 23. 1992. -1- • South Bend Redevelopment Authority Special Meeting - June 26, 1992 2. APPROVAL OF MINUTES (Cont.) b. continued... Upon a motion by Mr. Gammage, seconded by Mr. Fewell and unanimously carried, the Authority approved the Minutes of the Special Meeting of Tuesday, June 23, 1992. 3. NEW BUSINESS a. Authority approval requested for agreement with Hurdzan Golf Desictns for consulting services in the Airport Economic Development Area. Mrs. Kolata noted that all of the New Business items on the agenda relate to the construction of a golf course in the Airport Economic Development Area. They were all explained at this time and action was taken later in the meeting. i• Mayor Kernan noted that this action is a significant step in the process of developing the Airport 2010 Project to create jobs and increase tax base in South Bend. The total Airport 2010 project involves construction of a golf course near the airport, with corporate sites around the golf course. It is one of only about half a dozen such projects in the country. Improvements in the area which add to the unique environment of the development are the airport, the toll road, the U.S. 31 By-pass, and the availability of Indiana Bell fiber-optics. Mayor Kernan noted that the City has made or will be making significant investment in public improvements in the area. $6.5 million worth of TIF bonds were sold for land acquisition and public works activities and $5.5 mission of state funds are being spent on the realignment of Nimtz Parkway, construction of the toll road access ramps, and moving of I & M power lines. This project has been described in Indianapolis as the prototype of what an economic development project should look like. By 2010 we hope to build on the success of the Airport Industrial Park which has become the area's largest employer. We expect the project to encourage over $700 million of private investment and the creation or retention of 27,000 jobs, with $16.5 million per year in additional tax base for the City. The first phase of the project will be Blackthorn Golf Course and the office • surrounds it. We have tried to create would be recognized as being the best what is now called campus that a golf course that in the -2- A South Bend Redevelopment Authority Special Meeting - June 26, 1992 3. NEW BUSINESS (Cont.) a. continued... marketplace. It is going to have to support itself. Revenue from greens fees, etc., will make the bond payments. Jon Hunt explained the contracts to be entered into with Hurdzan Golf Design, North American Golf,. Eckenhoff Saunders Architects, and Cole Associates. Mr. Hunt noted that the Authority previously entered into a pre-development contract with North American Golf to refine the overall concept, the business park, golf course, and market and financial issues. That contract with North American Golf included subcontracts with Cole Associates and Hurdzan Golf Designs. Instead of continuing the relationships as subcontractors, we are contracting directly with each of those firms. However, the contract with North American. Golf will include managing the contracts with the other firms. Mr. Hunt noted that the contract with Hurdzan Golf Design will be for consulting services to complete construction drawings for the golf course. The Eckenhoff Saunders Architectural contract is for the design of the clubhouse for the golf course. The Cole Associates contract is for the design of the roadway access to the golf course, and water, sewer, lighting and other engineering components of the golf course. The contract with North American Golf is for project management and coordination of the other contracts, including construction management. Mrs. Kolata noted that the contract with H. J. Umbaugh & Associates is for services related to structuring the bond issue, handling the bond sale, and other technical services following the bond sale. Mrs. Kolata noted that the contract with Baker & Daniels is to serve as bond counsel for the bond sale. Their fee is based on an hourly rate with a not-to-exceed cap, plus reimbursables. Mrs. Kolata noted that the project for which the bond is being sold is the construction of a golf course, a clubhouse and a maintenance building, and improvements related to those, including equipping the golf course for operation and maintenance. -3- South Bend Redevelopment Authority • Special Meeting - June 26, 1992 3. NEW BUSINESS (Cont.) a. continued... Michael Rippey explained the features of the golf course, clubhouse and maintenance building. The 200 acre site allowed a lot of flexibility in designing the course, maximizing its office frontage and utilizing the natural attributes. It is a flexible golf course, playable at several different lengths and levels of difficulty. It has 19 holes, but can be played as an 18 hole course for tournament play. We hope that the golf course will become known as one of the best golf courses in the Midwest. Mr. Rippey noted that the two primary support facilities to the golf course are a clubhouse and a maintenance center. The clubhouse will be a fairly small, stylish building with a brick exterior. It will be built into a hill so that both levels can be accessed from ground level. The maintenance center will be built in the south central portion of the site. It will be screened from the golf course and the office sites by existing trees. Mr. Rippey explained that the name Blackthorn Golf Course was taken from the Blackthorn tree, a type of Hawthorn tree that grows in Ireland. Therefore, it lends itself to an Irish theme. There are some Hawthorn trees on the site. Mrs. Kolata explained that item 6.g., approving Resolution No. 58, declares that the Authority intends to issue bonds to construct a golf course and that some of the bond proceeds will be used to reimburse predevelopment costs. Mrs. Kolata explained that item 6.f ., approving Resolution No. 59, is the primary bond resolution. It says that the preliminary plans, specifications and cost estimates have been filed and, by this resolution, are approved; that the Authority desires to enter into a Lease with the Commission for the land; and that the Authority desires to enter into an agency agreement with the Board of Public Works for bidding out the construction and supervising the construction. The Lease states that the term of the bond issue will not exceed 20 years and that the maximum semi-annual lease payment will not exceed $447,500. Mrs. Kolata explained that our cost estimates for the course, equipment, maintenance building and clubhouse -4- South Bend Redevelopment Authority Special Meeting - June 26, .1992 3. NEW BUSINESS (Cont.) a. continued... total $4.5 million dollars. We've added million to the size of the bond to cover interest and the cost of the issuance of bond size will be approximately $5.4 mil less, depending on interest rates at the sale. approximately $1 capitalized the bonds. The Lion, more or time of the bond Mrs. Kolata noted that the Commission needs to approve the Lease also and then it will go before the Common Council and the State Tax Board. Then the bond sale can take place and the Lease will be adjusted to reflect actual interest rates and lease payments. Mrs. Kolata noted that we expect to begin construction on the golf course October 1, with the course open for play in July 1994. The first full season of play will be 1995. We have capitalized interest through 1995 to make certain that the revenues are on hand to make the 1996 payments. Mr. Nussbaum noted that the Redevelopment staff and Legal Department have reviewed the Lease and related documents and have found them to be in order. We recommend approval of the documents. There needs to be a minor correction in the Hurdzan contract: the date for the golf course to be ready for play says June 1993, but should say June 1994. Mr. Nussbaum acknowledged the many hours spent on this project by the Economic Development and Legal Department staff. Upon a motion by Mr. Gammage, seconded by Mr. Fewell and unanimously carried, the Authority approved the agreement with Hurdzan Golf Design for consulting services in the Airport Economic Development Area. b. Authority annroval regu.ested for agreement with North American Golf Inc for consulting services in the Airport Economic Development Area. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the agreement with North American Golf, Inc. for consulting services in the Airport Economic Development Area. c. Authority approval requested for agreement with Eckenhoff Saunders Architects Inc for consulting services in the Airport Economic Development Area. -5- South Bend Redevelopment Authority Special Meeting - June 26, 1992 3. NEW BUSINESS (Cont.) c. continued... Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the agreement with Eckenhoff Saunders Architects, Inc. for consulting services in the. Airport Economic Development Area. d. Authority approval requested for agreement with H. J. Upon a motion by Mr. Gammage, seconded by Mr. Fewell and unanimously carried, the Authority approved the agreement with H. J. Umbaugh and Associates for financial services related to the Airport Economic Development Area. e. Authority approval requested for agreement with Baker & Daniels for legal services related to the Airport Economic Development Area. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the agreement with Baker & Daniels for legal services related to the Airport Economic Development Area. f. Authority approval requested for agreement with Cole Associates for design services related to the Airport Economic Development Area. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the agreement with Cole Associates for design services related to the Airport Economic Development Area. g. Authoritv approval requested for Resolution No. 58 establishing intent to issue Redevelopment Authoritv lease rental revenue bonds and that certain preliminary redevelopment costs be reimbursed from the proceeds__of said bonds. Upon a motion by Mr. Gammage, seconded by Mr. Fewell and unanimously carried, the Authority approved Resolution No. 58 establishing intent to issue Redevelopment Authority lease rental revenue bonds and that certain preliminary redevelopment costs be reimbursed from the proceeds of said bonds. • -6- South Bend Redevelopment Authority Special Meeting - June 26, 1992 3. NEW BUSINESS (Cont.) h. Authority approval requested for Resolution No. 59 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 a~provinQ preliminarv plans. specifications and cost estimates for the projects and other related matters. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved Resolution No. 59 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, approving preliminary plans, specifications and cost estimates for the projects and other related matters. 4. APPROVAL OF CLAIMS AIRPORT TAXABLE BOND John & Betty Pendl and Jordan's Mishawaka Transfer John & Betty Pendl and Roy Piper John & Betty Pendl and Torok Excavating and Demo TOTAL AIRPORT TAXABLE BOND SBCDA PUBLIC IMPROVEMENT PROJECT Reynaldo Hernandez TOTAL SBCDA PUBLIC IMPROVEMENT PROJECT $2,639.50 150.00 1.120.56 $3,910.06 $ 240.00 $ 240.00 Mr. Wroblewski asked whether we had approved the claim to Pendls and Jordan's Mishawaka Transfer previously. Mrs. Kolata responded that we did, but the amount was in error. They returned the check and we will have a replacement check cut in the amount approved today. Upon a motion by Mr. Fewell, seconded by Mr. Gammage and unanimously carried, the Authority approved the claims submitted June 26, 1992 for payment. -7- South Bend Redevelopment Authority Special Meeting - June 26, 1992 5. ADJOURNMENT There being no further business to Redevelopment Authority, Mr. Fewell meeting be adjourned. Mr. Gammage meeting was adjourned at 9:18 a.m. IXJ~ W e Jo ph Wroblewski, President come before the made a motion that the seconded the motion and the Ann E. Kolata, Director -8-