HomeMy WebLinkAbout2015 0121 Redevelopment Authority MinutesSOUTH BEND REDEVELOPMENT AUTHORITY
REGULAR MEETING
January 21, 2015
10:30 a.m.
Presiding: Richard Klee, President
1308 County-City Building
227 West Jefferson Boulevard
South Bend, IN 46601
The meeting was called to order at 10:37 a.m.
1. SWEARING IN OF AUTHORITY MEMBERS
The Mayor has appointed Mr. Richard Klee, Mr. Anthony Fitts, and Ms. Erin
Hanig to serve on the Redevelopment Authority for a three year term. Mr. John
Voorde conducted the swearing in of the appointees.
2. ROLL CALL
Members Present:
Members Absent:
Redevelopment Staff:
Legal Counsel:
Others Present:
3. ELECTION OF OFFICERS
Mr. Richard Klee
Ms. Erin Hanig
Mr. Anthony Fitts
Mr. Scott Ford, Executive Director
Mr. Dave Relos, Associate 11
Ms. Tracy Oehler, Recording Secretary
Mr. Benjamin Dougherty, Legal Department
Mr. John Voorde, City Clerk
Mr. Randy Rompola, Faegre Baker Daniels
Mr. Matthew Arth
Ms. Hanig nominated Mr. Klee to be President, seconded by Mr. Klee and Mr.
Klee nominated Ms. Hanig to be Secretary-Treasurer, seconded by Ms. Hanig.
The vote being unanimous, Mr. Klee was elected President and Ms. Hanig
Secretary-Treasurer.
Ms. Hanig nominated Mr. Fitts to be Vice President, seconded by Mr. Klee. The
vote being unanimous, Mr. Fitts was elected Vice President.
4. NEW BUSINESS
A. Resolution No. 190 Approving a Schedule of Regular Meeting Times
for Calendar Year 2015
Upon a motion by Secretary-Treasurer Hanig, seconded by President Klee
and unanimously carried, the Authority approved Resolution No. 190
approving a schedule of regular meeting times for calendar year 2015.
South Bend Redevelopment Authority
Regular Meeting -January 21, 2015
Page 2
B. Resolution No. 191 -2015 Infrastructure Bond
Mr. Ford gave an overview of the rationale and process of the 2015
Infrastructure Bond. The bond amount is to be $25M inclusive of all
transaction costs, capitalize interest and debt service reserve fund, netting
approximately $21.4M in proceeds available for projects. The term of the
bond is anticipated to be repaid over 20 years, with a maximum lease
rental payment of up to $1.9M per year. The bond sale is scheduled to
occur in the third week of March and closing the first to second week of
April.
Mr. Rompola discussed how the Redevelopment Authority is the agent of
the Redevelopment Commission and is the issuer of the bond. If the
Common Council approves the execution of the lease, the Authority and
Commission would be able to sign the lease without holding a formal
meeting. Additionally, a notice of execution would be published February
13, 2015.
A discussion followed between the Board Members and Mr. Rompola
regarding the tax backup. Mr. Rompola explained the bonds could be sold
in the bond market as pure revenue bonds, incurring a higher interest rate
as it is risker and with a lower bond rating. With the alternative tax backup,
the bond is a more secure debt and the City's AA credit rating can be used
generating a lower interest rate and making the cost of financing cheaper.
It was clarified that once the financing is complete, the lease would be
amended so the Commission's annual lease payments would match the
debt service payments paid out of the account by the bond trustee.
Upon a motion by Secretary-Treasurer Hanig, seconded by President Klee
and unanimously carried, the Authority approved Resolution No. 191
approving a proposed lease for certain local public improvements between
the South Bend Redevelopment Authority, as lessor, and the South Bend
Redevelopment Commission, as lessee, approving preliminary plans,
specifications and cost estimates, and other related matters.
5. ADJOURNMENT
President Klee adjourned the meeting at 11 :03 a.m.
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Richard Klee, P )dent reasurer
South Bend Redevelopment Authority ment Authority