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HomeMy WebLinkAbout01-25-2006COUNCIL PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE, INDIANA January 25, 2006 The Common Council of the City of Jeffersonville, Indiana met in special session with the Redevelopment Commission in the Mayor's Conference Room in the City- County Building, Jeffersonville, Indiana, at 7:00 P.M. on Wednesday January 25, 2006. Those in attendance were Councilpersons Connie Sellers, Phil McCauley, Barbara Wilson, and John Perkins and Redevelopment Commission Members Nathan Samuels, Kyle Williams, and Tracy Farrell. Also in attendance were Mayor Rob Waiz, Clerk Treasurer Peggy Wilder, City Attorney Les Merkley, Redevelopment Director Barry Cahill, Deputy Clerk Barbara Hollis and Attorney Greg Filer. Mayor Waiz introduced Mr. Kent Arnold, Developer for the Veterans Parkway Town Center, Mr. Jack Koetter, Developer, Mr. Herschel Frierson of Crowe Chizek and Company, and Mr. Buddy Downs of Ice Miller. Councilperson Perkins made the motion to retain Mr. Greg Filer as temporary City Council Attorney for any legal questions that may arise tonight, second by Councilperson Sellers, passing on a vote of 4-0. Mr. Kent Arnold stated they are moving along and the site work is nearing completion and are about ready to start vertical buildings. Leasing action remains strong. The schedule is to have certain portions of the project open by the fall of this year, with over 400,000 sq ft opening in the spring of 2007, with the remainder of the project opening by the fall of 2007. He is here to start funding process. Mr. Buddy Downs of Ice Miller provided and explained the time schedule and term sheet. This will be just like an industrial development bond. That is the bond purchaser is going to be the company, they will loan the proceeds to the City, the City Council will take the action, the proceeds will be loaned to the developer, and the developer is supposed to repay the bonds. The Redevelopment Commission will pledge the TIF that has been agreed upon to offset the loan repayment. If there is not enough in the TIF the Developer repays the loan. Mr. Downs further explained the details. The timetable is a draft showing the steps that have to be taken. The term sheet was January 25, 2006 2 reviewed. Councilperson McCauley asked ~vhat the obligation would be if the borrower went into some type of bankruptcy, what would the City's obligation be? Mr. Downs said the City would have the obligation to pay the TIF and no other obligation. Mr. Downs explained there would be a cap of $5 million for North and $2 million for South. Mr. Downs reviewed the drawdown procedure. Councilperson McCauley said the Council is behind this project and wants to help it go. He would like to see flexibility in the equity. Councilperson McCauley asked what cost, with regard to the bond, issue will the City have. Mr. Herschel Frierson stated the biggest upfront cost would be the capitalized interest. Mr. Downs feels the fees for the professional services will be upfront. That will all be in the bond document. Councilperson Perkins said he met today with Mr. Arnold and Mr. Koetter and he feels very good about the project. They are to be commended for the upscale proposal. This is a tremendous project for the City of Jeffersonville. It is going to be fantastic. Council President Wilson has also met with Mr. Arnold and Mr. Koetter and has been impressed with the project. Mayor Waiz wants all to be comfortable with the project and encourages all to ask questions at any time. Mr. Nathan Samuels said his initial concern was the risk factor and he feels that is gone. By creating the new TIF District it is wrapped in a nice package. He does not see how the City can lose. Clerk Treasurer Wilder said there are new reporting guidelines from the DLGF regarding bond issues. Mr. Frierson said Crowe Chizek would help. Mr. Arnold said he is getting building permits now. Councilperson McCanley presented and explained Resolution No. 2006-R-8, A Resolution Hiring Attorney For Purpose Of Representing City Council's Interest In Bridgeview Center, LLC v. The City Of Jeffersonville, Et. A1 Cause Number 10C01- 0203-PL-0230. Councilperson McCauley made the motion to pass Resolution No. 2006- R-8, second by Councilperson Sellers, passing on a vote of 4-0. January 25, 2006 As there was no further business to come ~'(ore tln adjourned 8:10 P.M. 3 uncil, the meeting was ROBERT L. WAIZ, MAYOR PEGGY WILDER, CLERK AND TREASURER