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HomeMy WebLinkAbout02-07-79 Council Special Meeting Minutesti SPECIAL MEETING FEBRUARY 7, 1979 Be it remembered that the Common Council of the City of South Bend met in a Special Meeting in the Council Chambers of the County -City Building on Thursday, September 27, 1979 at 4:00 p.m. The meeting was called to order and the Pledge to the Flag was given. NOTICE OF SPECIAL MEETING OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND Pursuant to I.C. 18 -1 -3 -2 and Chapter 2, Section 5 of the South Bend Municipal Code, I hereby call a special meeting of the Common Council of the City of South Bend for the specific purpose of considering a resolution authorizing the City to convey, for valuable consideration, the public improvements to be constructed in the First Bank Center Project area to FBT Bancorp, Inc. and RAHN Properties, II, the redevelopers of the First Bank Project area. This special meeting shall be held on September 27, 1979, at 4:00 p.m. Only such business shall be con - ducted at this special meeting as is specifically stated in this call. /s /Peter J. Nemeth Peter J. Nemeth, Mayor ATTEST: /s /Jo Ann Harper Jo Ann Harper, Deputy City Clerk SEAL ROLL CALL PRESENT: Council Members Serge, Szymkowiak, Taylor, Kopczynski Adams, Dombrowski, Horvath and Parent ABSENT: Council Member Miller RESOLUTION NO. 723 -79 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE BOARD OF PUBLIC WORKS TO CONVEY CERTAIN PUBLIC IMPROVEMENTS TO BE LOCATED IN A MULTI -USE PROJECT IN THE BLOCK BOUNDED BY COLFAX, MICHIGAN, WASHINGTON AND ST. JOSEPH STREETS TO FBT BANCORP, INC., AND RAHN PROPERTIES II. WHEREAS, construction has commenced on a multi -use complex consisting of an office build- ing, a first -class hotel,an enclosed atrium interconnecting the various structures, an all -weath garage, and an enclosed walkway to the Century Mall, all of which improv- ements will be located in an area bounded by Colfax Avenue on the North, St. Joseph Street on the East, Washington Street on the South and Michigan Street on the West, in South Bend, Indiana; and WHEREAS, the CIty of South Bend has received approval from the United States Department of Housing and Urban Development under Title I of the Housing and Community Development Act of 1977 for an Urban Development Action Grant in the amount of $7,600,000.00 for construction of the public improvements in theproject, to -wit, the garage, atrium and walkway; and WHEREAS, the successful completion of the project is in the best interests of the citizens and taxpayers of the City of South Bend, Indiana, in that the project will foster additional permanent jobs in the community, will expand the tax base of the City, and will promote ad- ditional economic development throughout the community; and WHEREAS, the Board of Public Works desires to convey the public improvements to be located in the multi -use complex to FBT Bancorp, Inc. and RAHN Properties II, the developers of the project, for valuable consideration thereby relieving theCity of the costs associated with the maintenance and operation of such improvements while making such improvements subject to propert taxation; and WHEREAS, the Board of Public Works wishes to guarantee reasonable access to and use of the public improvements to the general public for such time as the developers shall own such improvements; and WHEREAS, this conveyance is deemed necessary by bond counsel for the project in order to preserve the tax - exempt status of the industrial development bonds which the developers have applied for; and WHEREAS, such conveyance is authorized by State Law (I.C. 18- 1- 1.5- 2(d)). NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana as follows: SECTION I. The Board of Public Works of the City ofSouth Bend hereby is authorized to agree to transfer the public improvements to be constructed in the multi -use project, to -wit, the garage, atrium and walkway, to FBT Bancorp, Inc. and RAHN Properties II pursuant to the terms and conditions set forth in the separate agreements which are attached hereto as Exhibits A and B. SECTION II. This Resolution shall be in full force and effect from and after its passage by the Common Council, and its approval by the Mayor. /s /Walter M. Szymkowiak Member of the Common Council 489 SPECIAL MEETING SEPTEMBER 27, 1979 A public hearing was held on the resolution at this time. Mayor Peter J. Nemeth gave a brief history of the downtown revitalization. He indicated that the City has 1.6 million dollars invested in this project. He indicated that this resolution would authorize the Board of Works to transfer the public improvements to FBT Bancorp, Inc., and RAHN Properties II pursuant to the agreement attached to the resolution. The Mayor indicated there was a typing error on page 2 of the second agrement in Section 2, through September 30, 2015 should read $27,000. The Mayor said that the bond counsel has indicated this resolution has to be adopted for them to be able to issue an opinion letter that the economic development bonds would be tax exempt. He indicated that the City obtained bond counsel and had an opinion that it was the valid way to approach this situation. He indicated that if improvements are not conveyed, then there would not be property taxes of approximately $150,000 per year; the City would be responsible for the maintenance of the atrium at a minimum expenses of $100,000 per year; the City would not receive $200,000 per year, escalating to approximately $80,000 at the end of the conveyance term; bond financing could not be obtained since all capital expenditures of the City within the last three years would have to count against the $20 million capital expenditure limit of each the hotel and the bank. He said that ownership of the land and improvements reverts to the City at the end of 99 years. He indicated they still had closing to go through and it will commence next week and the bonds will be sold for the Marriott Hotel.. He said that as soon as these acts are accomplished the City Attorney will submit a certification to HUD indicating that the project is committed and HUD will release the 7.6 million grant. He said they antici- pated this will be accomplished before ground breaking on October 19, 1979. Council Member Szymkowiak made a motion to adopt this resolution, seconded by Council Member Dombrowski. Council Member Adams asked why this did not have to go through the public bidding process. Mr. Brunner indicated that the public bidding process need not be used because the public purpose will still be continued. She asked the amount of parking spaces that will be in the garage. Mr. Brunner indicated 670; the Marriott will have 525 and the bank 150, approximately. She asked if both groups have signed a binding agreement that they are going with the project. The Mayor indicated they have signed contingent upon the sale of the bonds. Council Member Adams indicated that the Council had approved the sale of the park area to the First Bank. She asked Mr. Murphy, President of the First Bank, if that will remain park area or is it going to be a drive -in bank. Mr. Murphy indicated it will be maintained as a park area. He said that when they were trying to attrach ho.tels�,to South Bend there was a fear that if they made the in- vestment in this project that someone would come along and build something like a pizza parlor on that land. He said it was the bank's intention that it will be maintanined as a park area. He thanked the Council for the continuing support on the project. The motion carried on a roll call vote of eight ayes. There being no further business to come before the Council, Council Member Taylor made a motion to adjourn, seconded by Council Member Dombrowski. The motion carried and the meeting was adjourned at 4:25 p.m. ATTEST: APPROVED: City Clerk President