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HomeMy WebLinkAbout1994-03-03 Minutesr~ LJ SOUTH BEND REDEVELOPMENT AUTHORITY SPECIAL MEETING March 3, 1994 4:30 p.rn. Presiding: Joseph Wroblewski President 1308 County-City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 The March 3, 1994 Special Meeting of the Redevelopment Authority was called to order at 4:36 by its President, Joseph Wroblewski. There was a quorum present. 1. ROLL CALL Members Present: Mr. Joseph Wroblewski, President Mr. Andre B. Gammage, Vice-President Legal Counsel: Ms. Jenny Pitts Manier u Redevelopment Staff: Mrs. Ann Kolata, Director Mrs.. Cheryl Phipps, Recording. Secretary. Mr. James Riggs, Economic Dev. Specialist Others: Mr. Randy Rompola, Baker & Daniels 2. APPROVAL OF MINUTES a. Approval of Minutes of the Special Meeting of Wednesday February 23. 1994. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, the Authority approved the Minutes of the Regular Meeting of March 3, 1994. 3. OLD BUSINESS a. Authority approval requested for Pr~osal from Ken Herce~ & Associates for engineering services in the Airport Economic Develoyment Area. ~Nimtz/Bendix intersection) Item 3. a. was tabled. 4. NEW BUSINESS Mrs. Kolata asked permission to add item 4.c. to the agenda. There was no objection and the item was added. • . South Bend Redevelopment Authority Special Meeting -March 3, 1994 4. NEW BUSINESS (Cont.) a. Authority authorization requested to sign Tax Al Road Industrial Park in the Aiport Economic Development Area Mrs, Kolata explained that the Authority purchased land in the Toll Road Industrial Park with funds from a bond issue. Therefore,. that land is leased to the Redevelopment Commission which put it up for bid and has accepted a proposal for approximately six acres with a five acre option to purchase at a later time. The proposal is for a yet unannounced 100,000 square foot warehouse distribution center. As the lease-purchaser of the property.. the Commission has the authority to dispose of the land, although the Authority is the technical owner.. Thepartnershp that is purchasing. the property wants to begin construction. right .away and wants to apply for tax abatement. Since the Authority is still the owner; the Authority must sign the tax abatement petition on behalf of Toll Road Industrial Park Partners. Upon a motion by 1VIr. Gammage, seconded by Mr. Wroblewski .and unanimously carried,. the Authority authorized the staff to sign the tax abatement petition on behalf of Toll Road Industrial Park Partners, L.P. for property located at Lot 18C, Toll Road Industrial Park, in the Airport Economic Development Area. b. Authority approval requested for yroposal from Simplex Time Recorders for professional services related to Blackthorn Golf Course. Mr. Riggs explained that the Authority recently approved a contract with Simplex to monitor an alarm system at Blackthorn Golf Course. This contract is for preventative. maintenance services, many of which are required. by state law. The. first year's services will be at a cost of $773. After that, the yearly cost will be $1,780. The first year services are cheaper because much of the equipment is under warranty. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried,. the approved the contract with Simplex Time Recorders for professional services related to Blackthorn Golf Course. c. Authority approval requested for Internal Revenue Service forms and Payment Letter related to the 1~reort Tax Exempt Bond. • • South Bend Redevelopment Authority Special Meeting -Mare 3, 1994 4. NEW BUSINESS (Cont.) c. continued... Mrs. Kolata explained that the Airport Tax Exempt Bond has certain tax provisions that require the Authority to spend bond funds according to a defined schedule. Since the funds were not spent by the designated dates, there are fines and penalties resulting from that. At the time the bond was sold, we had a choice of either yield restricting the bond proceeds or investing them at the highest interest rate we could get. Choosing the option which allowed us to invest them at the best possible interest rate put us on a schedule for expending. the proceeds that we have not been able to meet. Immediately after we got bond proceeds, interest rates dropped- and we were not able to make the most of that option. In hindsight, it would have been better to choose the option which restricted investment yield: We have policed this infraction ourselves and have initiated payment of the penalties. If we were to be found intentionally in default, the tax exempt bonds would become taxable and cause major problems for our investors. • U on a motion b Mr. Gamma e, seconded b Mr. Wroblewski and P Y g Y unanimously carried, the Authority authorized signing the Internal Revenue Service forms and execution of the Payment Letter. 5. APPROVAL OF CLAIMS Claims submitted for payment 3 March 1994 : 1991 AIRPORT TAX-EXEMPT BOND Internal Revenue Service $ 4,425.97 Internal Revenue Service $ 2,873.14 Internal Revenue Service $ 7,998.72 Internal Revenue Service $ 4,873.74 Internal Revenue Service $ 8,646.33 Internal Revenue. Service $ 4,942.92 Internal Revenue Service $ 6,073.45 Internal Revenue Service $ 3,245.21 1993 AIRPORT TAXABLE BOND John & Betty. Pendl and Ritschard Brothers, Inc. $ 1,522.93 • • South Bend Redevelopment Authority Special Meeting -March 3, 1994 5. APPROVAL QF CLAIMS (Cont.) BLACKTHORN CONSTRUCTION FUND Wittek Golf .Supply Inc $ 4284.50 Cole Associates $ 511.01 Ameritech $ 86.36 Ameritech _ $ 397.77 Eckenhoff Saunders Architects $ .912.20 City of South Bend Department of Public Parks $ 8,625.29 GVW Tire $ 171.00 Upon a motion, by Mr. Gammage, seconded. by Mr. Wroblewski and unanimously carried, the Authority approved Claims submitted March 3, 1994. 6. SET NEXT MEETING DATE No definite time was set for the Next Meeting which will be held the week of March 14, 1994. • 7. 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 4:54 p.m. ~ ~ ~ ~~ oseph W. Wroblewski, President Ann E. Kolata, Director