11-26-18 Community Investment - Laserfiche WebLink

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•CITY OF SOUTH BEND I OFFICE OF THE CLERK programming space. That component of the project will cost, roughly, $18 million to $19 million. In the Memorandum of Understanding, the City would obligate $4 million of net proceeds from the River West TIF Fund for that component of the project. It is also looking for approval from all the bodies by December 2018.The bonds wouldn't be issued for roughly three(3)years.We expect to do it sometime in 2021 but the MOU states that they must be issued by quarter one(1) of 2022. So in roughly three (3) years from now we would be looking to issue the bonds. From the Public Library's view, they are obligating $20 million of bond proceeds. So, as Phil had just mentioned, $5 million now and another $15 million early next year. Then they would also look at $2 million of furnishings for the Main Library from other funds. There is an agreement that there will be a consultation on the design and plans for the new construction and renovation, and there is an explicit commitment to maintaining an entrance on Main Street. One (1) of the earlier proposals for the renovation had the door to our new investment in Smart Streets going away and so that is explicitly captured in this MOU. He went on,The other piece of the commitments is they have consented to developing the parking lot just south of the Library. There are certain criteria on that and those criteria include that parking is satisfied. The same number of parking must be met within that block as long as it doesn't contradict the mission of the Library or have adverse effects on the Library. Finally, the Community Foundation's obligations are $10 million for the Community Education Center and then they would also cover up to $4 million of financing for the City's contribution until the City issues the bonds in about three (3) years. This (referencing a slide in the presentation)just shows historic previous terms.As you can see,this was given in a presentation in September and it shows that the debt issuance by this Council is well in line with previous Councils. This is not even adjusted for inflation. If you did real dollars, it would be adjusted even more favorably. Here is a list of the River West obligations that are ending by 2025. These are most of the obligations in the River West TIF. The two (2) notable ones that are not on here that end later would be the Parks TIF Bond that was approved last year and that ends in 2032 and then the Smart Streets Bond which was used to extend the life of the TIF to 2037. Committeemember Sharon L. McBride arrived at the meeting at 4:10 p.m. Committee Chair Ferlic recognized a quorum. Dr. Mueller continued, So all of these other obligations will end by 2025 and many of them end in the next two (2) to three (3) years. As you can see, we can go through the specific obligations if you would like but if you see on the next slide, this opens up a lot of annual debt service capacity to be able to support what is proposed here from the Library proposal. So these(referencing a slide in the presentation) are numbers from Umbaugh, our financial advisor on this project. If this is assuming a fifteen (15) year bond, when we get to issuing the bonds in three (3) years, it may be shorter term. But this is a reasonable assumption of a fifteen (15) year bond with the interest rate a point above what it is today as we don't know what the interest rate will be exactly in three (3) years. These are all reasonable assumptions. If you shorten the time or interest rates change, we will still be well within the debt service capacity. This will also not preclude other priorities that we may need over the next three(3)years for other debt. He went on,With regards to community impacts,the South Bend Regional Chamber of Commerce has done the input into their model and found the construction phase would lead to sixty-five(65) direct jobs and support one hundred and fifty(150) indirect and induced jobs. The total economic output from the construction phase will be $64 million. The operations phase, which is what the EXCELLENCE j ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TTD574.235.5567,www.southbendin.gov 3