06-26-17 Council Minutes - Laserfiche WebLink

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REGULAR MEETING JUNE 26, 2017 There were none from the public wishing to speak in favor of or in opposition to this bill. Councilmember John Voorde made a motion to adopt Bill No. 17-34. Councilmember Oliver Davis seconded the motion which carried by a roll call vote of seven (7) ayes. 17-36 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AND AUTHORIZING CERTAIN ACTIONS AND PROCEEDINGS WITH RESPECT TO CERTAIN PROPOSED ECONOMIC DEVELOPMENT REVENUE BONDS AND RELATED MATTERS Councilmember Karen White, Chair of the Personnel and Finance Committee, reported that they met this afternoon and send this bill forward with a favorable recommendation. Tyler Kalachnik,the Law Firm of Ice Miller, 1 American Square, Indianapolis, IN, stated, We are acting as bond counsel for prospective projects. The resolution before you contemplates not- to-exceed $14,000,000 of bonds to be used for rehabilitation of the Miami Hills apartments- one-hundred and fifty-one (15 1) apartment units located on 3534 High Street. Mr. Kalachnik stated, There is, in this instance, conduit financing, so there's no effect on the constitutional debt limit of the City. It's not payable from taxes solely from revenues from the project. A commission letter was sent as contemplating another statute, and no comments came back from the Plan Commission in terms of the zoning appropriateness of the master plan. This is one- hundred percent (100%) Section Eight(8), affordable property. It will remain that way after rehabilitation. The bonds are anticipated as a short-term collateralized structure, so they'll be only outstanding for eighteen(18)to twenty-four(24) months and totally secured by U.S. treasuries and cash. There are sixty-six (66)planned new construction jobs to go along with the rehabilitation period. Councilmember Oliver Davis asked if the key to the issue was the aforementioned commission letter of support from the City. Mr. Kalachnik responded, Yeah, the key thing tonight would be with adoption: the ability to go back and reimburse with bond proceeds later in the process, when we come back for a final approval of the actual bond issuance. It is simply a step to show that there was an official intent that there could be bonds and expenditures that would be reimbursed from those bonds later. Councilmember Davis asked, When will that process take place, do you know? Mr. Kalachnik responded, The developer might be closing the transaction before the end of the year. Based on the timeline probably around November, we would be back for final approval. Councilmember Jo M. Broden asked, Could you address the issue of, during the renovation, where the current residents will go and how you're going to manage that? Mr. Kalachnik responded,The primary preference is to have them stay at the campus of the current facility in available units while that work is taking place. Councilmember Davis asked, Since you are at one-hundred percent (100%) occupancy, wouldn't it take some time to have enough spots available where people would actually be able to stay for two (2) weeks? Mr. Kalachnik responded, I can't speak for the developer as we don't represent them. Given the natural course of how tenants roll off, I think that they will have vacancies, but certainly alternative arrangements could be made for a short stay elsewhere for a two (2) week period. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There were none from the public wishing to speak in favor of or in opposition to this bill. 15