02-09-15 Common Council Meeting Minutes

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REGULAR MEETING FEBRUARY 09, 2015 THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby finds that the rental payments, as approved by the Commission, are fair and reasonable, and further finds that the use of the Project throughout the term of the Lease will serve the public purpose of the City and is in the best interests of its residents. The Common Council further finds based upon information provided by H.J. Umbaugh and Associates, LLP, financial advisor to the City, that (i) the interest rates on the Bonds are expected not to exceed six percent (6 %); (ii) the term of the Bonds is expected not to exceed twenty -two (22) years; (iii) the Authority expects to capitalize interest on the Bonds for a period beginning on the date of issuance of the Bonds and extending through and including not later than February 1, 2017; and (iv) the Bonds will be subject to optional redemption by the Authority beginning on a date not later than ten (10) years from the date of issuance of the Bonds. SECTION II. The Common Council hereby approves said Lease, as approved by the Commission, pursuant to Section 25.2 of the Act, in substantially the form provided at this meeting and attached hereto as Exhibit A. The Common Council hereby approves of the issuance of the Bonds by the Authority as described herein in an aggregate principal amount not to exceed Twenty -five Million and 00 /100 Dollars ($25,000,000.00). SECTION III. This Resolution shall be in full force and effect from and after the time it has been adopted by the Common Council, approved by the Mayor, and otherwise executed and delivered in accordance with any and all laws pertaining thereto. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA Member of the Common Council Councilmember Gavin Ferlic the Community Investment Committee met earlier today and send bill No 15 -10 to the full Council for a favorable recommendation. Presenter Scott Ford, Executive Director of Community Investment it is my pleasure to improve the quality of the all means of traffic. All work will help economic vitality and help additional residences to the community. All work will be funded through a TIF back bond, so the approval we are asking for tonight is for the approval of the lease. The bond itself is a $25million bond, several advantages to do the work at once, with minimizing disruptions, and keep funds to invest in quality of life. Term of the bond in 20 years, debt coverage 3.25 to 11 %, so in a strong position to cover these payments. Councilman Oliver can you highlight their role with INDOT on this project? Petitioner responded Public Works are in negotiation with INDOT, and have had several meetings the Principal is behind. Eric Horvath, Public Works Director 141h floor of this building, they see the value in it for the city and so they continue to come to the table to seeing the project move forward. Negotiations are not finalized but participate in design meetings to meet the needs of INDOT. Councilman Davis do you see any hiccups coming with the timing on this project? Petitioner the timing issues is a difficult one, we want to have it done by the end of December we will continue to push that. Just a matter of coming up with a final agreement. Councilman Davis has there been other cities that have done this type of work and has there been success. Petitioner INDOT has done this in a variety of cities and have been helpful. The state would be responsible for ongoing maintenance and provisions for money to have funding for a particular number of years. 12