Resolutions relating to potential issuance of bonds for the Buffalo Street project were approved by members of the Warsaw Redevelopment Commission today at noon.
The first resolution established the commission’s intent to reimburse certain preliminary costs from the proceeds of bonds. The second approved a proposed form of lease for local public improvements and set a public hearing on the proposed lease.
Randy Rompola, with Faegre Baker Daniels, South Bend, explained both resolutions to commission members and three members of the common council present.
Rompola stated the first resolution allows the commission to be reimbursed for authorized expense from this date forward if and when the circumstances arise, not to exceed $2,750,000, the maximum side of the bond, if issued.
The second resolution provides the structure to issue the bond through a Redevelopment Authority. That authority will handle the financing and leasing of the project. Rompola stated this is similar to how schools operated in a building project. “The sole purpose of the three-member body is to issue bonds, finance and lease to the redevelopment commission.” The authority, comprised of individuals appointed by the mayor, will accept the lease payment from the commission.
According to Rompola because the redevelopment district is limited on how much it can finance, the authority can go beyond this amount for bond issues. The state established the authority in 1987 and numerous smaller communities are now creating the authorities to handle bond issues. A resolution establishing the redevelopment authority will be read at tonight’s common council meeting, followed by a public hearing at 2:30 p.m. Monday, April 20, to establish the authority.
Jeremy Skinner, city planner, stated the mayor intends to appoint Everett Nifong, John Warren and George Clemens to the authority. It was also noted once the authority is established it will remain as a city organization but would only need to meet when a project is underway.
The resolution, approved by the commission, states the commission will make a maximum rental payment of $220,000 annually, or $110,000 semi-annually over a period not to exceed 25 years. The payment is the debt service on the bond if issued.
During other business, the commission approved the hiring of Griffin Real Estate and Vern Mitchell to provide appraisals of Polk Drive in the new Tech Park, not to exceed $2,500. The purchasing of this drive is phase one of the tech park project. A ribbon cutting ceremony of the new park is expected in the near future.
Additionally the commission approved the redevelopment claims of $6,400 to Wessler Engineering for the engineering of the lift station design at the Tech Park and $21.40 for legal advertising to an area newspaper.
The next regular meeting of the redevelopment commission will be at noon, May 4. There was some discussion that the time of the meeting may be changed.