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HomeMy WebLinkAbout1999-07-12 Redevelopement Authority Minutes"r • SOUTH BEND REDEVELOPMENT AUTHORITY REGULAR MEETING July 12, 1999 1308 County-City Building 1:30 p.m. 227 West Jefferson Boulevard Presiding: Ms. Carolyn Pfotenhauer South Bend, IN 46601 The July 12, 1999 Regular Meeting of the Redevelopment Authority was called to order at 1:35 p.m. by its President, Carolyn Pfotenhauer. There was a quorum present. 1. ROLL CALL Members Present: Ms. Carolyn V. Pfotenhauer, President Mr. Matthew Kahn, Vice-President Mr. Jose Alvarez, Secretary Redevelopment Staff: Mrs. Ann E. Kolata, Director Mrs. Jenny Hullinger, Recording Secretary Mr. Brian Steinke, Attorney Others: Ms. Anne Bruneel, 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 May 3, 1999. 3. New Business a. Authority approval requested for Resolution No.133 approving a modification to and reducing the Annual Rentals on the Lease for the Downtown Property Acquisition Project and approving the execution of an Addendum to the Lease and other related matters. Mrs. Kolata stated Resolution No.133 is related to the Section 108 financing that was entered into earlier this year by the Authority. Since the notes have been sold and the actual interest rates are known, the repayment schedule has been modified to reflect the actual numbers rather than the estimated numbers. Mrs. Kolata said that the Addendum changes the payment schedule to reflect the actual schedule of repayment. Mrs. Kolata stated the Escrow Agreement also has exhibits A, B and C. Ms. Pfotenhauer asked what the change in the dollar amount was. Ms. Anne • H:\WPDATA\AUTHORTY\071299.MIN The South Bend Redevelopment Authority • July 12, 1999 Meeting Minutes Bruneel stated she didn't recall the maximum dollar amount in the original lease that the Redevelopment Authority approved, but this is far less. The lease rate that was initially approved was a steady rate, but we were able to get a lower one. HUD sells Section 108 loans in a series that mature every year, so the payment will decrease over the term of the note. The highest payment will be in July 2003 in the amount of $304,580.00 and then decreasing after that. Mrs. Kolata stated that the beginning payments will only be on the Studebaker property, which we currently own. The Main and Jefferson portion will not be ready for repayment to begin until the property is acquired and demolished and ready for use. The Section 108 money must be spent by the end of April 2000. Ms. Bruneel said the Escrow Agreement is necessary because the lease rentals correspond to the debt service on the Section 108 loan. The payment on the Section 108 loan is semiannual: an interest only payment in February and an interest and principle payment in August. The Redevelopment Commission will make payments of the same amount twice a year, so the Escrow Agent will hold the extra funds, invest them, and then credit the Commission on the amount earned through the investment. . Mrs. Kolata stated that Exhibit A to the Trustee Agreement is the Lease Rental schedule, Exhibit B is the note repayment schedule, Exhibit C is the Wire Transfer instructions. Upon a motion by Jose Alvarez, seconded by Matthew Kahn and unanimously carried, the Authority approved Resolution No.133 approving a modification to and reducing the Annual Rentals on the Lease for the Downtown Property Acquisition Project and approving the execution of an Addendum to the Lease and other related matters. 4. CLAIMS Claims submitted for approval July 12, 1999. Century Center Bonds Trustee fees for May 1, 1999 through Apri130, 2000 $1,090.00 College Football Hall of Fame Lease Rental Bonds of 1994 Landesbank Hessen-Thuringen, Letter of Credit fee • H:\WPDATAWUTHORTY\071299.MIN • The South Bend Redevelopment Authority July 12, 1999 Meeting Minutes for 7/30/99 through 10/30/99 $20,893.56 Upon a motion by Mr. Kahn, seconded by Mr. Alvarez and unanimously carried, the Authority approved the claims submitted July 12, 1999. 6. NEXT MEETING DATE: August 2, 1999. 7. ADJOURNMENT There being no further business to come before the Redevelopment Authority, Mr. Kahn made a motion that the meeting be adjourned. Mr. Alvarez seconded the motion, and the meeting was adjourned at 2:00 p.m. • ~'~o~~z'i15flY~~`~dt~f~'i/a~i,~z<~i~e~ld'a~i~t/ Matt ew Kahn, Vice-President Ann E. Kolata, Director • H:\WPDATA\AUTHORTY\071299.MIN