11-26-18 Community Investment - Laserfiche WebLink

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•CITY OF SOUTH BEND I OFFICE OF THE CLERK first (1St) week of November that we flagged for the Redevelopment Commission. I believe that your Council representative on the Redevelopment Commission also flagged for Council Members that existed so, we didn't think this was a fatal flaw since the MOU had been in your hands all month. Nothing in the MOU is too complicated or different from all the conversations we have had over the past several weeks. Phil Faccenda, Barnes & Thornburg with offices located at 100 N. Michigan Street, stated, The reason it is important to have a vote on the MOU, in particular, is that the Library is issuing $5 million of bonds to finance the Community Education Center, if you recall our previous conversations. It's hoped that they would then follow up with $15 million of bonds in 2019. They need to actually issue those bonds this year in order to preserve the levy structure of their two (2) part bond financing. That is tied to the calendar which is a bond sale that would be coming up next week. In order to sell those bonds, they need to have the commitment of the Community Foundation and the City to fund the Community Education Center with dollars other than their bond dollars. So if you were to continue this, they would not be able to move forward with their bond sale. I did not realize there was a process concern until about twenty (20) minutes ago and I'm sorry that there has been. But, as James said, the document has been completed since late October and was approved by the Redevelopment Commission. The Library Board approved it today, as well, at 12:00 p.m. noon and the Community Foundation approved it last week. If there are any questions about that document, at all, I'd be happy to answer them. I think the prior two (2) presentations that have been made to the Council on the project have covered the most important points. Committeemember Oliver Davis asked, Which bill are we on? Committee Chair Ferlic replied, We are on both 60-18 and 18-71. Councilmember Karen White asked,Could you maybe just highlight some of the key points of the MOU? Dr. Mueller replied, Yes and it is in the presentation. We are excited to bring this to you (referencing a presentation which is available in the City Clerk's Office). We've had a lot of conversations about programming and the space itself as well as the possibilities of partnership with the Library and the Community Foundation. Tonight we are ready to get into the financial details and the structure of the bond financing as well as the provisions within the Memorandum of Understanding. So,we will do a quick project overview of what we talked about previously, go over the key commitments outlined in the MOU, look at the financial position of where these dollars are proposed to come from and look at some of the community impacts. The Library will then talk more about what they anticipate for programming. He continued, So we are looking at a $36 million to $38 million overhaul of the Main Library Branch downtown which will include a renovation of the existing building and the construction of a new building on the north east corner of that block, of which would be three (3) stories, would connect to the existing building and have a courtyard in the middle. This is in collaboration with the Public Library and the Community Foundation as well as the Redevelopment Commission of the Common Council and the Civil City of South Bend. The City's participation that we will get to in the commitments is on this new component which is called the Community Education Center. It will be about 38,000 square feet which will include an auditorium, meeting, office and EXCELLENCE ACCOUNTABILITY INNOVATION i INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 111)574.235.5567 www.southbendin.gov 2