03-12-79 Council Meeting Minutes

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REGULAR MEETING MARCH 12, 1979 REGULAR MEETING RECONVENED (CONTINUED) RESOLUTION NO. 687 -79 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE MAYOR TO EXPEND FUNDS NECESSARY FOR ARCHITECTURAL AND ENGINEERING FEES, DEVELOP- MENT MANAGEMENT COSTS, AND RELATED ADMINISTRATIVE COSTS WITH RESPECT TO THE DEVELOPMENT AND CONSTRUCTION OF A MULTI -USE PROJECT IN THE BLOCK BOUNDED BY COLFAX, MICHIGAN, WASHINGTON AND ST. JOSEPH STREETS IN DOWNTOWN SOUTH BEND. WHEREAS, construction is proposed of a multi -use complex consisting of an office building, a first -class hotel, retail space, an enclosed atrium interconnecting the various structures, al all- wather garage, and an enclosed walkway to the Century Mall, all of which improvements wil 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 Hosuing 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 pub is portion of theproject; and WHEREAS, the successful completion of theproject is in the best interests of the citizens aild taxpayers of the City of South Bend, Indiana, in that the project will foster additional per- manent jobs in the community, will expend the tax base of the City, and will promote additional economic development throughout the community; and WHEREAS, the City of South Bend presently has been engaged in preliminary negotiations wit the First Bank and Trust Company of South Bend, Indiana, Marriott Hotels of Washington, D. C. and its nominee RAHN Properties II, and Gerald D. Hines Interest, all parties to the proposed construction of the multi -use project; and, WHEREAS, it now is necessary to move the proposed project to a point at which the costs of construction may be ascertained. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Mayor of the City of South Bend hereby is authorized to expend all funds necessary for architectural and engineering fees, development management costs (maximum of $705,000.00), and related administrative costs, to move the proposed multi -use project to a point at which the costs of construction may be ascertained. 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 /Roger 0. Parent Member of the Common Council A public hearing was held on the resolution at this time. Mayor Peter J. Nemeth, indicated this resolution would authorize the expenditure of funds for the "Hole" project, in order that construction costs can be bid by companies. He said the monies would be drawn down from the UDAG grant, however, in the event the project does not proceed, the City may be liabile to repa3 the UDAG monies to HUD. He said the total at this time would be approximately $705,000. Mr. James Grummell, 1146 Cleveland, asked if any more funds were going to be needed. He indicated that the Council should be a limit on the amount to be expended. Mr. Joseph Szalay, 19300 Wedgewood, spoke in favor of this expenditure. He asked the Council to adopt this resolution. Council Member Kopczynski asked if the CIty was the only one who was assuming the risk on this project. The Mayor indicated that the private sector was investing over twenty -one million dollars. Council Member ADams made a motion to amend the resolution in Section I, after the word "costs" by adding in parentheses "maximum of $705,000.00 ", seconded by Council Member Koczpynski. The motion carried. Council Member ADams made a motion to adopt this resolution, seconded by Council Member Kopczynski. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 688 -79 INDUCEMENT RESOLUTION OF SOUTH BEND COMMON COUNCIL RELATING TO H.T.W. PARTNERSHIP PROJECT. WHEREAS, The South Bend Ecnomic Development Commission heretofore has investigated, studies surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and commercial diversifica- tion within the City of South Bend, Indiana; and in order to improve and promote job opportuni- ties and commercial diversification within the City of South Bend, Indiana, a financing agree- ment should be effected with H.T.W. Partnership, an Indiana Partnership, relating to a project to be known as the H.T.W. Partnership Project; and WHEREAS, H.T.W. Partnership is an existing Indiana Partnership who is presently leasing a building and related facilities in the Airport Industrial Park, South Bend, Indiana to Nyloncraft, INc., an Indiana Corporation, for the purpose of manufacturing molded plastics and plastic injection products and Nyloncraft, Inc. as the principal user of said facility desires to expand its operation and to employ a substantial number of additional_ employees in said Airport Industrial Park; and WHEREAS, to induce H.T.W. Parnership to expand its present facilities in the South Bend Airport Industrial Park, the South Bend Common Council desires to adopt this resolution; and WHEREAS, it is apparent that the H.T.W. Partnership Project will increase job opportunitie: and commercial diversification in South Bend, Indiana, resulting in a benefit to the welfare of the public in the City of South Bend, Indiana, and St. Joseph County, Indiana.