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HomeMy WebLinkAbout1994-03-15 Minutes C. L` SOUTH BEND REDEVELOPMENT AUTHORITY SPECIAL MEETING March 15, 1994 3:00 p.m. Presiding: Joseph Wroblewski President 455 County-City Building 227 W. Jefferson Boulevard South Bend, Indiana 46601 The March 15, 1994 Special Meeting o~he1Ree ev~lapa quoru p etsen as called to order at 3:12 by its President, Joseph Wroblew 1. ROLL CALL Members Present: Mr. Joseph Wroblewski, President Mr. Andre B. Gammage, Vice-President Ms. Mary O. Ferlic Legal Counsel: Ms. Jenny Pitts Manier Redevelopment Staff: Mrs . Ann Kolata, Director Mrs. Cheryl Phipps, Recording Secretary • Media: Mr. Don Porter, .South Bend Tribune Others: Mayor Joseph E. Kernan Ms. Mikki Dobski Shidler, Hall of Fame Mr. Richard Hill, Baker & Daniels 2. ELECTION OF OFFICERS Ms. Jenny Pitts Manier, Deputy City Attorney, conducted the election of officers. PRESIDENT Mr. Gammage nominated Mr. Joseph W. Wroblewski to serve as President of the South Bend Redevelopment Authority. Ms. Ferlic seconded the nomination. Upon a motion by Mr. Gammage, seconde nb foM1994rlic and unanimously carried, Joseph W. Wroblewski was elected Preside VICE-PRESIDENT Mr. Wroblewski nominated Mr. Andre Gammage to serve as Vice-President of the South Bend Redevelopment Authority. The nomination was seconded by Ms. Ferlic. • • . 2. ELECTION OF OFFICERS (font:) VICE-PRESIDENT continued... Upon a motion by Ms. Ferlic, seconded by Mr. Wroblewski. and unanimously carried, Mr. Gammage was elected Vice-President for 1994. SECRETARY Mr. Wroblewski nominated Ms. Mary O. Ferlic to serve as Secretary of the South Bend Redevelopment Authority. The nomination was seconded by Mr. Gammage. Upon a motion by Mr. Gammage, seconded by Mr. Wroblewski and unanimously carried, Ms. Ferlic was. elected Secretary for 1994. Mr. Wroblewski resumed the chair. 3. APPROVAL OF MINUTES a. Authority anbroval of Minutes of the Special meeting of Thursday March 3. 1994. Upon a motion by Mr. Gammage, seconded by Ms. Ferlic and unanimously carried, the Authority approved the Minutes of .the Special Meeting of March • 3, 1994. 4. NEW BUSINESS a. Authority annroval requested for Resolution No 88 reaffirming its intent to issue Redevelo ment Authorit Lease Rental xevenue ponds quid iG aldu~ other related matters. Mayor Kernan made the presentation regarding the bonds for the construction of the College Football Hall of Fame and the improvements at Century Center. Mr. Kernan noted that when the Hall of Fame project was first announced two years ago, we intended to pay for the construction of Hall of Fame with donations or sponsorships from private sources. That plan has not changed. However, what we expected to have in place in the way of commitments or guarantees from private sources has changed to a financing plan that is better than first envisioned. About a year and a half ago the Authority issued Bond Anticipation Notes to pay for some of the up-front costs related to the Hall of Fame construction, such as architecture, engineering and exhibitry design. The design is complete and we have taken bids on the construction. The bids have come in very ~ ,. • • South Bend Redevelopment Authority Special Meeting -March 15, 1994 4, NEW BUSINESS (Cont.) a. continued... favorably and we hope the bids will be similarly favorable for the exhibitry. The Redevelopment Commission and the South Bend Common Council both voted unanimously to recommend moving forward with the issuance of bonds for construction. The construction contracts are ready to be signed immediately. We expect to be able to sell bonds in early to mid April and close on the bonds before the end of April. The financing plan that follows will protect the citizens of South Bend from having to pay for the bonds: 1. The National Football Foundation has committed a $4.5 million guarantee. That guarantee will be called upon if the fundraising effort is unsuccessful or partially successful. The chances of the fundraising being successful is • bolstered by this commitment from the National Football Foundation. 2. A group of eighteen citizens has stepped forward to guarantee $2.5 million worth of additional bonds. 3. The University of Notre Dame has committed human resources to take over the fundraising effort. Dr. Bill Sexton, Vice President for University Affairs will be chairing the corporate sponsorship side of the fundraising. Dr. Phil Faccenda, Vice President and General Counsel, will chair the individual subscription effort. 4. The Indiana General Assembly recently passed legislation that increased the HotellMotel Tax in St. Joseph County from 5 % to 6 % . That additional tax will generate additional funds which can be used for the Ball of Fame project. The Mayor will ask the HoteUMotel Tax Board to dedicate those additional revenues from the first year to one-and-one-half years for pre- opening expenses and, at the end of 1995, make an additional determination whether those funds will be needed for debt service on the bonds. A conservative projection of those additional revenues over a 25- year period would cover $4 million of the bonds. 3 r1 L_~ • South Bend Redevelopment Authority Special Meeting -March 15 , 1994 4. NEW BUSINESS (Cont.) a, continued... • 5. The City has already spent $3 million on pedevelopment costs. These five sources total the $14 million projected cost of the Hall of Fame. With this financing plan, the worst position the City could be in is its present position, except that we would have the Hall of Fame instead of $3 million in debt and no Hall of Fame. ~ there wasr an abso ute need~We ~ learlys do not used to retire debt service, want to use that revenue for debt service, but we could. Mayor Kernan noted that the bonds also fund improvements to Century Center. The Redevelopment Authority will be taking ownership of Century Center in order to make these improvements. Mrs. Kolata noted that most of the legal steps have been completed for this bond. In Resolution No. 88 the Authority is restating its intent to issue the • bonds and authorizing the Board of Public Works to act as its agent in the construction. After the bonds are sold the Authority will need to approve the Lease with the actual numbers resulting from the bond sale. Upon a motion by Ms. Ferlic, seconded by Mr. Gammage and unanimously carried, the Authority approved Resolution No. 88 ue Bonds and regarding issue Redevelopment Authority Lease Rental Re other related matters. Mayor Kernan thanked the Authority and acknowledged the effort of many people on behalf of this project. b. Authorit a royal re uested Bend RedeveloNment Commis onhe transfer of real ro crt from the South Mrs. Kolata explained that thedland be owned by the Au horitylin ordert for its owned by the Commission an bond funds to be spent to improve it. Therefore, the Commission wishes to transfer its ownership to the Authority. There is a service drive between the lots, a portion of which must be vacated for the project. The Commission will • -4- • South Bend Redevelopment Authority Special Meeting -March 15, 1994 4. NEW BUSINESS (Cont.) b. continued.... r~ ~~ petition the Council to vacate a portion of the service drive and will transfer the entire property. Upon a motion by Mr. Gammage, seconded by Mr. Fewell and unanimously carried, the Authority approved Resolution No. 89 accepting the transfer of real property from the South Bend Redevelopment Commission. c. Authority avnroval requested for Resolution No 90mdicatine the~An~ho nt~ 's intent to issue Redevelo merit Authorit Lease tcenuu tcGiuuuul y~==~~ ~--~ that certain relimin costs be reimbursed from the roceeds of such bonds. Mrs. Kolata noted that a discussion of interest razes coe enHi~e of RF Bond has caused us to consider refunding the 1990 Tax In Bonds for the downtown, East Bank and Monroe Park area. We are not certain that we want to move ahead. with the refinancing because each bond • can only be refinanced one time and interest rates may not be such that there is sufficient savings to warrant a refunding. However, this resolution will allow us to begin discussions with our financial consultant and potential bond buyers to see if we can negotiate a good rate. Our financial. advisor and out Controller both feel that a negotiated sale will be the best method if we do refinance. Upon a motion by Ms. Ferlic, seconded by Mr. Gammage and unanimously carried, .the Authority approved Resolution No.R90 ~ dRefu ~ e B rids ands intent to issue Redevelopment Authority Lease g that certain preliminary costs be reimbursed from the proceeds of such bonds. 5 , APPROVAL OF CLAIMS Claims submitted for payment 15 March 1994 BLACKTHORN CONSTRUCTION FUND South Bend Water Works $ 121.57 South Bend. Water Works $ 42.51 Pence-Dickens & Heeter $ 50.41 • -5- • • South Bend Redevelopment Authority Special Meeting -March 15, 1994 5. APPROVAL OF CLAIMS (Cont.) BLACKTHORN CONSTRUCTION FUND continued... Wyatt Farm Center Illinois Lawn Equipment Ameritech Wittek Golf Supply North American Golf 6. 7. Upon a motion by Mr. Gammage, seconded by the Authority approved Claims submitted March SET REGULAR MEETING DATES $ 185.99 $ 225.81 $ 59.51 $ 193.50 $ 2502.50 Ms. Ferlic and unanimously carried, 15, 1994. The Authority set Regular Meeting Dates to be the first and third Wednesdays of each Month at 4:30 p.m., beginning Apri120, 1994. The Next Meeting of the Redevelopment Authority will be a Special Meeting to be determined later. ADJOURNMENT There being no further business to come before the Redevelopment Authority, Mr. Gammage made a motion that the meeting be adjourned. Ms. Ferlic seconded the motion and the meeting was adjourned at 3:40 p.m. G-- J eph .Wroblewski, President Ann E. Kolata, Director -6-