Monday, November 19, 2007

From Redevelopment Commission

Notes from meeting:

Resolution 2007-85
Approving a responsive bid pursuant to a Public Offering of real estate for the Harrison Square Hotel development project

White Lodging agreed to pay $1, but appraisals came to $17.50, which White Lodging agreed to pay for the real estate for the new hotel

Resolution 2007-86
Approving a responsive bid for the Harrison Square Residential/Retail condominium project

1 bid, Barry Real Estate Companies, $27/square foot
$675,000 based on development agreement, which was less than appraisal value

Resolution 2007-87
Approving a project Coordination Agreement

The Resolution calls for a project coordinator for the Harrison Square project, something that has been planned for since the beginning of the project and has also been previously budgeted for. Mansur was asked if they would be interested because of their involvement in Fort Wayne, most notably Renaissance Pointe. Mansur's response was that Barry Real Estate would be a better choice for project coordinator because of their involvement and investment in the project that would help to make sure the project succeeds.

The cost of the project coordination was said to be $1,650,000 by Steve Brody, which is about 3.75% of $43 million. With Weigand Construction acting as the construction manager for the ballpark, the fees associated with coordination come out to $2,050,000. This amount was said to be 4.66% while the market is generally 5-6% for project coordination.

Resolution 2007-88
Approving an Agency Agreement with the Fort Wayne Redevelopment Authority

Resolution 2007-89Approving the allocation of tax increment generated from the Jefferson/Illinois Road Economic Development Area, as amended

Tax exempt bond has 4.9% net interest rate
Taxable bonds sold in a couple weeks
$1.4M each year from Jefferson Pointe TIF
100% of Jefferson Pointe fund will be taken each year but only about 50% is expected to be used on a yearly basis. Entities will have to come to the Redevelopment body to use the other money and the Commission attorney stated that if the bond can be paid off 15 years earlier because of the 100% capture rate then "that's great".

All Resolutions passed unanimously