HomeMy WebLinkAboutRDA Minutes 5.1.24CITY OF SOUTHBEND
REDEVELOPMENT AUTHORITY
May 1, 2024 — 9:00 am
BPW Conference Room, 13th Floor or via: http://tiny.cc/RDA050124
The meeting was called to order at 9:00 am
1. ROLL CALL
Members Present: Erin Linder Hanig, President - V
Anthony Fitts, Vice -President - IP
Richard Klee, Secretary- IP
Redevelopment Staff: Mary Sears, Board Secretary
Legal Counsel: Sandra Kennedy, Esq. - V
Danielle Campbell Weiss, City Attorney
Attending: Caleb Bauer, Executive Director Community Investment
Erik Glavich, Director Growth & Opportunity
Sarah Schaefer, Deputy Director Community Investment
Randy Rampola, Barnes, and Thornburg
2. Approval of Minutes
Upon a motion by Secretary Klee and seconded by Vice -President Fitts, the
motion carried unanimously, the Authority approved the Minutes of the Meeting
of March 26, 2024.
3. New Business
A. Resolution No. 217 (Four Winds Field at Coveleski Stadium 2024 RDA)
Randy Rampola, Barnes, and Thornburg Presented Resolution No. 216. Randy
Rampola, Barnes & Thornburg, stated Resolution No. 217 is the last step in the
process to provide for the issuance of bonds that will finance the improvements
for Four Winds Field.
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County -City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601 p 574.235.9337 f 574.235.9021 www.southbendin.gov
CITY OF SOUTH BEND I REDEVELOPMENT AUTHORITY
Previously, you approved the lease that provides the security for the bonds that
is a twenty-year lease and has a maximum lease rental. We talked about when
the bonds are sold that lease rental will be reduced to match that service. The
Redevelopment Commission has approved the lease. Common Council
approved the lease and their resolution for the issuance of the bonds at their last
meeting. This resolution authorizes the issuance. The debt service is paid by the
lease rental payment of the Redevelopment Commission will pay and those lease
rental payments will come primarily from the PSCDA revenues. The PSCDA
revenues were enabled for the city in a legislative session in 2023 that expanded
PSCDA revenues to be collected by the city. There are more than sufficient
revenues to cover the debt service on the bonds.
There is a tax back up, but I want to be clear on the record that the tax backup
will not be needed. The PSCDA revenues, the city by statute can collect up to
$5M of those revenues. The maximum lease rentals are $4M and it is expected
to be significantly less than that. Crowe Horwath went back with the
Department of Revenue and looked at PSCDA legislation back to 2017 and the
revenues generated at that time are over $7M. State law limits that at $5M but
it was at $6M even during COVID. There is plenty of security in place so backup
will never be needed. The resolution before you authorizes bonds in an
aggregate principal amount. Everything done thus far has been parameters, so
we have a not to exceed interest rate in this resolution of 6%. This is a twenty-
year bond that is subject to redemption.
This resolution also appoints US Bank as the trustee for the bonds. That is the
bank the Commission will pay the lease rental to. US Bank will then pay the
bondholders. We will have a trust indenture in place that lays that out. The
bonds will be sold via a negotiated sale. Anticipated sale will be May/June 2024.
The plan is to have bonds sold and closed by mid -June so the city can place
orders for steel etc. Construction will happen at the end of the baseball season
and continue through 2026. Construction will be scheduled around the next
season.
Secretary Klee asked about authorizing a legal option, which happens
automatically?
Mr. Rampola stated yes legally. We are anticipating getting bond insurance.
Dick Naussbaum provided positive feedback for this resolution to the
commissioners via a letter on file.
Upon a motion by Secretary Klee and seconded by Vice -President Fitts, the
motion carried unanimously, the Authority approved the Resolution No. 217 on
May 1, 2024.
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CITY OF SOUTH BEND I REDEVELOPMENT AUTHORITY
5. ADJOURNMENT
The Author't adjourned the meeting at 9:14 am.
Anthony Fitts Rick Klee
South Bend Redevelopment Authority South Bend Redevelopment Authority
Erin Linder Hanig
South Bend Redevelopment Authority
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