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HomeMy WebLinkAbout1999-03-01 Redevelopment Authority Minutes_ . SOUTH BEND REDEVELOPMENT AUTHORITY REGULAR MEETING March 1, 1999 1:30 p.m. Presiding: Carolyn Pfotenhauer 1308 County-City Building 227 West Jefferson Boulevard South Bend, IN 46601 The March 1, 1999 Regular Meeting of the Redevelopment Authority was called to order at 1:40 p.m. by its President, Carolyn Pfotenhauer. There was a quorum present. 1. ROLL CALL Members Present:. Carolyn V. Pfotenhauer, President Matthew Kahn, Vice-President Jose Alvarez, Secretary Redevelopment Staff: Ann E. Kolata, Director Jenny Hullinger, Recording Secretary Brian Steinke, Attorney Others: Mr. Randy Rompola, Baker & Daniels • 2. APPROVAL OF MINUTES Upon a motion by Matthew Kahn, seconded by Jose Alvarez and unanimously carried, the Authority approved the Minutes of the Regular Meeting of February 15, 1999. 3. New Business a. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -Century Center Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and that all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability for the Century Center project. b. Certification of the South Bend Redevelopment Authority concerning • • Insurance and Tax Liability -College Football Hall of Fame Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the College Football Hall of Fame Project. c. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -Palais Royale Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March. 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. • Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment concerning Insurance and Tax Liability for the Palais Royale Project. d. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -Airport Economic Development Area Public Improvement Project (Tax-Exempt Improvement Project). Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the Airport Economic Development Area Public Improvement Project (Tax Exempt). e. Certification of the South Bend Redevelopment Authority concerning • 2 • The South Bend Redevelopment Authority March 1, 1999 Regular Meeting Minutes Insurance and Tax Liability -Blackthorn Golf Course Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the Blackthorn Golf Course Project. f. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -South Bend Central Development Area Public Improvement Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance • is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the South Bend Central Development Area Public Improvement Project. g. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -Wayne Street Parking Garage. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the Wayne • 3 • The South Bend Redevelopment Authority March 1, 1999 Regular Meeting Minutes Street Parking Garage. h. Certification of the South Bend Redevelopment Authority concerning Insurance and Tax Liability -Airport Economic Development Area Public Improvement Project (Taxable Improvement Project). Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the Airport Economic Development Area Public Improvement Project (Taxable). i. Certification of the South Bend Redevelopment Authority concerning • Insurance and Tax Liability -Morris Performing Arts Center Project. Mrs. Kolata stated that the Redevelopment Authority is required to notify the bond trustee by March 31 of each year that all taxes have been paid and insurance is in place on the public improvements that have been paid for with the bond proceeds. The staff has verified that no taxes are due and all the forms of insurance are in place. Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously carried, the Authority approved the Certification of the South Bend Redevelopment Authority concerning Insurance and Tax liability for the Morris Performing Arts Center Project. j. Authority approval requested for Resolution No. 132 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Notes (Downtown Property Acquisition Project), approving a Proposed Lease for certain land to be acquired with the proceeds thereof, approving Preliminary Plans and Cost Estimates and other related matters. Mr. Randy Rompola of Baker and Daniels stated that Resolution No. 132 authorizes the issuance of notes in conjunction with the Section 108 loan program. The Section 108 Loan will be used to acquire property in downtown South Bend. • 4 • The South Bend Redevelopment Authority March 1, 1999 Regular Meeting Minutes The one property is an L-shaped parking lot just north of the Studebaker Museum on the corner of Lafayette and Monroe, extending over to Main Street. The other property to be purchased is at Jefferson and Main. It includes Hardee's, Hardee's parking lot, Barb's restaurant and the former C.E. Lee building. The Common Council approved an arrangement for the City to borrow $1.8 million from HUD for the two projects. HUD would like the loan secured by the Tax Increment Revenues and Economic Development Income Tax Revenues, which will be used to pay back the loan. HUD guarantees the repayment of the loans, which come from institutional investors. This resolution provides the security that HUD will be repaid. In order to use the EDIT revenues to repay the loan, a lease arrangement is required. This lease provides for immediate lease payments for the Studebaker property, which corresponds with the interest requirements on the notes. Principal payments begin in 2003 or 2004, which is when the lease rental would begin for the downtown properties. The loans will mature in 12 years. The Redevelopment Commission has already approved the lease. Following Authority approval of Resolution No. 132, the Lease will go to the City Council for its approval on March 22. • Ms. Pfotenhauer asked about the relimina lan p ry p sand cost estimates included m Resolution No. 132. Mrs. Kolata replied that the cost estimates are $1.825 million. The intent is to reimburse the monies spent on the Studebaker lot. The interest rate on the loan cannot exceed 8% without starting the process over. After the sale of the notes on April 14, 1999, an amended lease will be submitted with the actual interest rate of the notes. Mr. Rompola stated that the interest rate is based on U.S. Treasury notes with individual maturities. Ms. Pfotenhauer asked about the timetable for the loan. Mrs. Kolata stated that Resolution No. 132 will go to a public hearing before the Redevelopment Commission on March 19, and then to the City Council March 22 for approval of the lease between the Authority and the Commission. The sale of notes is expected on April 14. Money should be available on April 15. The Studebaker Museum property has already been purchased, two of the other properties have purchase offers on them. The City cannot send purchase offers on the other two properties until we have the loan money. The purchase offers are out on the Barb's restaurant and the former C.E. Lee building. We moved forward on the C.E. Lee building because a tenant in the building, Cyberlink, was about to make a major capital investment in the building. We are finalizing the terms of Cyberlink's relocation and they will be moving shortly. City Chapel owns the • 5 • The South Bend Redevelopment Authority March 1, 1999 Regular Meeting Minutes C.E. Lee building. Upon a motion by Mr. Kahn, seconded by Ms. Pfotenhauer, and unanimously carried, the Authority approved Resolution No. 132 authorizing the issuance of the South Bend Redevelopment Authority Lease Rental Revenue Notes (Downtown Property Acquisition Project), approving a Proposed Lease for certain land to be acquired with the proceeds thereof, approving Preliminary Plans and Cost Estimates and other related matters. k. Authority approval requested for authorization of Norwest Bank to invest the funds held in the Debt Service Reserve Fund. (Morris Bond Issue) Mrs. Kolata stated Norwest Bank N.A. wants to invest the Debt Service Reserve funds for a longer period of time than originally agreed. There is currently $1,157,840 in the account, invested in U.S. Treasuries, which is currently earning 4.09%. If the funds were invested in 6-month Treasuries they would earn 4.56%. The City Controller agreed that the investment was a good one for the Debt Service Reserve fund. i Upon a motion by Jose Alvarez, seconded by Matthew Kahn, and unanimously approved, the Authority authorized Norwest Bank N.A. to reinvest the funds held in the Debt Service Reserve Fund of the Morris bond issue. 4. NEXT MEETING DATE: March 15, 1999. 5. ADJOURNMENT There being no further business to come before the Authority, Mr. Alvarez made a motion that the meeting be adjourned. Mr. Kahn seconded the motion and the meeting was adjourned at 2:00 p.m. Carolyn . Pfote au ,President Ann .Kolata, Director • fi