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Home My WebLink About09-29-77 Council Meeting MinutesREGULAR MEETING (CONTINUED) SEPTEMBER 29, 1977 Be it remembered that the regular meeting of the Common Council of the city of South Bend re- convened in the Council Chambers on the fourth floor of the County -City Building at 4:06 p.m., Council Parent presiding. The Pledge to the Flag was given. ROLL CALL PRESENT: Council Members Serge, Szymkowiak, Miller, Taylor, Adams, Horvath and Parent ABSENT: Council Members Kopczynski and Dombrowski RESOLUTION NO. 583 -77 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND SUPPORTING THE COMMITMENT OF PUBLIC SECTOR RESOURCES TO THE CONTINUED DEVELOPMENT AND REVITALIZATION OF SOUTH BEND'S CENTRAL BUSINESS DISTRICT. WHEREAS, the City of South Bend has embarked upon the development and revitalization of the South Bend Central Business District; and WHEREAS, the continued development and revitalization of South Bend's Central Business District is important to the quality of life of the total community and would be advantageous to the future growth and development of the City of South Bend; and WHEREAS, during the development and revitalization of the South Bend Central Business District, it would be necessary for the public sector to participate by providing services and facilities; and WHEREAS, the Common Council of the City of South Bend is interested in promoting developmen of the Central Business District, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: SECTION I. That the Common Council of the City of %uth Bend will appropriate sufficient funds from its Community Development Block Grant Entitlement for Program Year 1978, to financial "close -out" Urban Renewal Project R -66 by August 31, 1978, but in no event shall such.appropriat exceed forty (40) percent of such grant. SECTION II. That the Common Council of the City of South Bend will, as part of the "close -ot procedure, appropriate sufficient funds from General Revenue Sharing to pay the outstanding re- location claim for costs incurred in relocating Indiana Bell Telephone property within the Urban Renewal Project R -.66. SECTION III. That the Common Council of the City of South Bend will appropriate funds for any cost overrruns for public sector improvements undertaken in conjunction with the development of Century Mall from Community Development Block Grant funds, provided that in no case shall the allocation of Community Development funds exceed forty (40) percent of each Program Year Entitle- ment. SECTION IV. That the Common Council of the City of South Bend recognizes and acknowledges that no further financial assistance, other than previously committed Project R -66 funds and Urgent Needs Grant funds, will be available to the City of South Bend from the U.S. Department of Housing and Urban Development for public sector costs associated with the Century Mall projeci SECTION V. This Resolution shall be in full force and effect immediately upon its passage by the Common Council of the City of South Bend, Indiana. RESOLUTION NO. 584 -77 /s /Mary Christine Adams A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, SUPPORTING THE COMMITMENT OF PUBLIC SECTOR RESOURCES TO THE CONTINUED DEVELOPMENT AND REVITALIZATION OF THE SOUTH BEND CENTRAL BUSINES DISTRICT. WHEREAS, the City of South Bend has embarked upon the development and revitalization of the South Bend Central Business District; and WHEREAS, the contin District is important to to the future growth and WHEREAS, during the it will be necessary for and aed development and revitalization of South Bend's Central Business the quality of life of the total community and would be advantageous development of the City of South Bend; and development and revitalization of the South Bend Business District, the public sector to participate by providing services and facilities; WHEREAS, the Common Council of the City of South Bend is interested in promoting develop- ment of the Central Business District, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: SECTION I. That the Common Council of the City of South Bend supports and is in favor of securing Federal funds through grant applications submitted to the United States Department of Transportation (Urban Mass Transit Administration) and the United States Department of Com- merce (Economic Development Administration) for the purpose of providing public parking of at least seven hundred (700) spaces and transit facilities to support commercial and retail develop ment and revitalization of South Bend's Central Business District. m SECTION II. That the Common Council of the City of South Bend supports and is in favor of committing local public sector resources, in the form of Civil City bonding funds, or other sour s, to provide public parking facilities containing at least seven hundred (700) spaces in the event the City of South Bend is unable to secure Federal funds from the Economic Development Administra 'on and the Urban Mass Transit Administration. SECTION III. 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He said sto were leaving the downtown area and we must reverse the trend. Council Member Taylor said he supported some kind of revitalization of the downtown area. He said he felt this was an opportu to keep a door open and allow some flexibility for potential redevelopment of the downtown area. He said he supported the resolutions. Council President Parent said the negotiation meeting was not secret. He indicated it was not open to the public. He said the Council was invited to the meeting. He explained some of the things that took place at the meeting. Council Member Adams asked Mr. Butler if he had a copy of the agreement that the Council could look at. Mr. Butler indicated he did not have a copy of the agreement, just the rough draft. Council Member Adams made a motion to recess, seconded.by Council Member Horvath. The motion carried and the meeting was recessed at 5:26 p.m., and reconvened at 5:36 p.m. Council President Parent asked Mr. Kevin Butler to read the agreement to the Council. Mr. Butler read the following agreement: "The agreement would be between or among the Department of Re- Development and the Civil City of South Bend and the investors, and the various investors would sign the agreement individually. The first provision or paragraph would set forth the obligatior of the investors; #l.the investors submit a bid to purchase and develop the property according to the Urban Renewal Plan and the legal requirements for bidding which are established by State law and Department of Housing and Urban Development requirements. The first objective is subject to the following two conditions and only the following two conditions: #1 Redevelopment offers the property for public bid by April 1, 1979; #2 That the minimum price established by the reuse appraisals, immediately prior to offering the property for public bid, will not exceed $450,000. The second obligation of the investor is that they will submit a security bond contemporaneously with the signing of the agreement that will be in the form possibly of a letter of credit which will provide that the lending institution that.issued it, or the bonding company, if it is a bon( will pay to the Redevelopment Department $45,000 in the event the Redevelopment Department certii to the lending institution or bonding company that the investors have breached their obligation under the agreement. The next paragraph covers the obligation of the Department of Redevelopmeni that.would be in the event the investors submit a bid and that bid is awarded by Redevelopment, then Redevelopment will deed the..property to the developers by April 1, 19x80. The year after the deadline for the bidding. The third paragraph would cover the obligations of Redevelopment and /or the City. There would be two obligations: #1 In the event the investors submit a bid for development of the shopping mall and this bid is awarded the City and /or Redevelopment will con- struct a parking garage or garages in the area to service the Century Mall, among other business( etc.,, within the area, and the parking garage or garages would contain not fewer than seven hundred (700) spaces. The details with respect to location, configuration, the amount of free parking, if any, that is something that would have to determined prior to the construction. The City and /or Redevelopment is not committing to any of those points right now. The second ob- ligation of the City and /or Redevelopment is that the City and /or Redevelopment, or both, will develop the pedestrian area in the shopping mall area, subject to the submission of a bid for a shopping mall and awarding of that bid. The details with respect to the location of that pedestrian area, the configuration and design, the amenities, are details that will be worked out prior to construction. The fourth paragraph will be to the effect that the agreement is subject to approval by HUD and the City Council. The reason for approval, that is instead of making HUD and the City Council parties to the agreement." Council Member Adams asked if the seven hundred parking spaces had to be new spaces. Mr. Butler indicated they would have to be new spaces. Council Member Adams asked how they arrived at $450,000 for the minimum bid. Mr. Butler indicated -they used a figure of $3 per square foot. Council Member Adams asked the price per square foot that was paid for Block Six. Mr. Butler indicated it was ninety cents per square foot. Council Member Adams asked what money would be used to acquire the property and pay for relocation. Mr. Butler indicated that they still had $900,000 remaining from the sale of bonds, and they anticipated receiving the 2.1 million in urgent need funds. Council Member Adams asked that if before anything can be done will those funds have to come before the Council. Mr. Butler indicated the $900,000 would not have to come before the Council. He said the 2.1 million would be approved by the Council on a line item basis. Council Member.Adams asked what effect this would have on the existing parking garage bor Mr. Butler indicated that he understood they will be refinanced as a package. She asked if he had any idea of the effect on the tax rate on this refinancing. Mayor Nemeth indicated they had talked with a consultant and if the City goes.with a non - revenue bond issue the interest rate would be much more favorable. Council Member Serge asked Mr. Candler, one of the developers, how much of an opportunity he was going to give the downtown merchants to go into the mall. Mr. Candler indicated they have not contacted every one. He said they had letters of intent fror some merchants. He said he would talk with any and all good tenants who want to go into the mall Council Member Szymkowiak indicated that he felt that a downtown mall will be a key to a success- ful downtown. He made a motion to adopt Resolution No. 583 -77, seconded by Council Member Taylor Council Member Horvath asked if the $450,000 which is based on 150,000 square feet, included the Odd Fellows Building. Mr. Brownell, Executive Director of Redevelopment indicated that the 150,000 square feet does not include the Odd Fellows. Building. Council Member Horvath indicated he was disappointed that there were no blue prints or plans. He said he did not want to see any more demolition in the downtown area. Council Member Adams made a motion to insert a new Section V to read that the Common Council recommends there be no demolition of any buildings until a bid is awarded for the Century Mall property. The motion died for lack of a second. Mrs. Hawle] owner_ of Jefferson Book Store, indicated that no one had contacted her about going into the mal_ Council President Parent indicated the process of downtown development has been going on for quit awhile, and it would be difficult to turn around at this point. He said this probably will serv( as a catalysis for future development. The resolution was adopted by a vote of seven ayes. Coun Member Miller made a motion to amend Resolution No. 584 -77, by adding seven hundred spaces in Section I, and.containing seven hundred spaces in Section II, seconded by Council Member Szymkow: The motion carried. Council Member Taylor made a motion to adopt the resolution, seconded by Council Member Szymkowiak. The resolution was adopted by a roll call vote of seven ayes. Counc: Member Taylor made a motion to adopt Resolution No. 585 -77, seconded by Council Member Serge. The resolution was adopted by a roll call vote of seven ayes. There being no further business to come before the Council, unfinished or new, Council Member Adams made a motion to adjourn, seconded by Council Member Dombrowski. The motion carried and the meeting was adjourned at 6:10 p.m. ATTEST: APPROVED: 7 City Clerk President s ty es S. it