Redevelopment Commission

MINUTES OF THE LAFAYETTE REDEVELOPMENT COMMISSION MEETING February 25, 2013 Board of Works Room, City Hall 11:00 am ATTENDANCE: COMMISSIONERS: Mary Lundstrom; Jim Terry; John Thieme, Jr.; Donald J. Teder; and Greg Eller CITY OFFICIALS: Tony Roswarski, Mayor; Cindy Murray, City Clerk; Ed Chosnek, City Attorney; Mike Jones, Controller; and Dennis Carson, Economic Development Director STAFF: Daniel Walker, City Planner; Margy Deverall, City Planner; and Nancy Hendricks, Administrative Assistant. GUESTS: Mike Liozzo, WBAA; Heather James, Ice Miller; Chris Wheatley, BF&S; Carly Sheets, BF&S; Mike Smith, BF&S; Kostas Poulakidas, Krieg DeVault; Jason Semler, H J Umbaugh; Sean Maloy, H J Umbaugh; Chris Morisse Vizza, Journal & Courier; David DeLong, WLFI-18 Welcome and Call to Order President Mary Lundstrom welcomed everyone to the meeting, noted that a quorum was present, and opened the meeting of the Lafayette Redevelopment Commission. Approval of the minutes for the January 24, 2013 meeting Jim Terry moved to approve the minutes of the Redevelopment Commissioners meeting for January 24, 2013. John Thieme, Jr. seconded. The motion passed. Resolution LRC #2013-04: Resolution authorizing the Execution of an Amended and Restated Lease, Continuing Certain Funds and accounts in Connection with the Amended and Restated Lease Between the Lafayette Redevelopment Commission and the Lafayette Redevelopment Authority, Approving the sale of Certain Property to the Lafayette Redevelopment Authority, Pledging Certain Revenues to Make Lease Rental Payments Under such Lease, Covenanting to Levy a Special Benefits Tax to Make All Required Payments Under the Lease, and Other Related Mattes (Creasy Treece Project) Dennis Carson introduced Kostas Poulakidas from Krieg DeVault who presented the bonds being considered for refunding. There are four bonds total: two bonds currently funded by the Consolidated Creasy Tax Increment Financing (TIF) District will be combined into the Creasy Treece Project Bond of 2013, Series A with short fall covered by a Special Benefits Tax; and two bonds currently funded by Economic Development Income Tax (EDIT) will be combined into the Brady Lane Project Bond of 2013, Series B with short fall also covered by a Special Benefits Tax. Kostas explained that by adding the coverage for short fall, the bonds are more marketable insuring a better interest rate. The Lafayette Redevelopment Authority issues the bonds; the Commission makes the payments or structures payments on advice. Dennis Carson then introduced Jason Semler of H J Umbaugh who presented the financial aspects of the refunding process. Creasy Treece Project’s currently high rate of interest (6%) is due to not having any back up sources of cash to cover shortfalls. As a result, that 6% rate reflects this risk. By adding the Special Benefits Tax and capturing the market’s currently low interest rates, the saving is obvious and significant. The total cost of the new bond is estimated to be at $7,955,278.22 and the duration is 13 years. If Umbaugh cannot sell the current bond for rates at 2% and under, they will return to the Commission and ask if it stills want to go forward with the sale. Umbaugh calculates a savings of over 8.5% during the life of the bond. Normally, Umbaugh requires a 3% threshold. Jos Holman moved to approve Resolution LRC # 2013-04. Donald J. Teder seconded. The motion passed: 4 in approval; 0 in opposition. Resolution LRC #2013-05: Resolution Authorizing the Execution of an Amended and Restated Lease, Continuing Certain Funds and Account in Connection with the Amended and Restated Lease Between the Lafayette Redevelopment Commission and the Lafayette Redevelopment Authority, Pledging Certain Revenue to Make Lease Rental Payments Under Such Lease, Covenanting to Levy a Special Benefits Tax in the Event Such Pledged Revenues are Insufficient to Make All Required Payments Under the Lease (Brady Lane Project) As presented during the Creasy Treece Project, the Brady Lane Project varies in its funding source (EDIT funds), in interest rate estimated reduction (down by 4.52% - within the 3% threshold), and in estimated total cost ($7,098,556.81). Although the issuance cost was estimated at the higher end of the expense, that amount may actually come in lower and will be offset by the lower value of the placement fee. Jos Holman moved to approve Resolution LRC #2013-05. Jim Terry seconded. At the call for the question, financial and procedural details of the bond were clarified. The motion passed: 4 in approval; 0 in opposition. Resolution LRC #2013-06: Resolution Declaring Expansion of Consolidated Central Tax Increment Financing District (TIF) and Consolidation of the Consolidated Central and Consolidated Creasy TIF Districts Dennis Carson gave the background history for the Consolidated Central TIF which merged the North 9th Street TIF District with the Central TIF District in 2008. The Creasy Treece TIF District followed the same process with the Creasy Brady TIF District to make the Consolidated Creasy TIF. Dennis explained that the resolution will expand the Consolidated Creasy TIF District to include the former Home Hospital site which is slated for redevelopment. In order to minimize the administrative costs for the Consolidated Central and the Consolidated Creasy TIF, consolidation of those two (consolidated) districts is also included in the resolution. Heather James, of Ice Miller, explained the re-characterization of the two redevelopment areas. This type of merge would not constitute a consolidation of the allocation areas. The plan for the TIF expansion consolidation process is included in the Resolution. It will then be presented to the Tippecanoe County Area Plan Commission for review and approval. After a public hearing, the plan will go to City Council for approval. Donald J. Teder moved to approve the Declaratory Resolution for Expansion and Consolidation (LRC #2013-06). John Thieme, Jr. seconded. The motion passed. 4 in approval; 0 in opposition. Agreement with Butler Fairman and Seufert (BF&S) Supplement 4 for Alabama & 3rd Streetscape Carly Sheets of BF&S outlined the project surrounding Alabama & 3rd Streets. Chris Wheatley of BF&S detailed the changes that needed to be made in order to fit the project into the budget. The west side of 3rd Street and the south side of Alabama plans were taken out in order to add changes to South Street and the alleys. This BF&S contract increases the compensation amount from $219,005.00 to $239,925.00: a change of $20,920.00. Jim Terry moved to approve the agreement with BF&S. Jos Holman seconded. The motion passed. Approval of Notice to bidders for Alabama & 3rd Streetscape The Alabama & 3rd Streetscape project is now ready to move forward. BF&S asked for approval to publish a notice to bidders of the terms and conditions of the project. The notice will be published twice. Jos Holman moved to approve the notice to bidders for publication in the local newspapers. Jim Terry seconded. The motion passed. Director’s Report Dennis Carson reported that the MetroNet Fiber project for county wide internet service is moving forward. MetroNet Fiber is currently looking for a central site in West Lafayette, but the service hut site for Lafayette is procured. Build out will start from Purdue and move toward Lafayette and then throughout the rest of the county. Back bone service should be completed by the end of March. Donald J. Teder moved to approve the Director’s Report. John Thieme, Jr. seconded. The motion passed. Approve February claims Jos Holman moved to approve payment of the February claims totaling $228,764.57. Jim Terry seconded. The motion passed. Public Comment/ Adjournment Mary Lundstrom invited comment from the public. Hearing none, Jim Terry moved to adjourn. Jos Holman seconded. The meeting adjourned. Respectfully submitted, Nancy Hendricks, Recording Secretary Approved, _____________________________________________________ Secretary, Lafayette Redevelopment Commission