HomeMy WebLinkAbout1999-07-12 Redevelopement Authority Minutes"r
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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
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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
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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
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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.
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Matt ew Kahn, Vice-President
Ann E. Kolata, Director
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