09-14-15 Common Council Meeting Minutes

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REGULAR MEETING September 14, 2015 had to be pre-approved. In 2014, the department began to investigate the feasibility of food trucks. Research has shown there are many benefits for food trucks such as increasing growth rather than deterring from it. It is a great way to market and expand their business. They have a venue to employ excess staff and test different marketing. Food trucks are an excellent incubator for entrepreneurs to test different products and access the feasibility of a permanent establishment. The NY Food Truck Association has forty-two (42) members of which forty percent (40%) now have brick and mortars. This development continues to grow in South Bend and provide lunch in business parks where there are limited lunch options. Food trucks strengthen local business by providing those options. Food trucks currently generate $650 million in revenue annually and this is expected to increase. In areas that have been changed to accommodate food trucks, there has been significant growth. In various cities you have food truck courts with live music, introducing residences to the food truck culture. Food trucks are an avenue to test their products and try new markets. When they see the demand they are inclined to spend the capital to start a full scale restaurant. Working with the health department we have addressed some of the concerns that have been issues in the past. As we realize the scope of changes we held several meetings to address possible problems. This involves Board of Public Works whom established many of the rules and regulations and coordinated necessary public parking. DTSB conducted a study to determine the fees appropriate for this area, and agreed to coordinate necessary parking, monitoring, and enforcement. The fire department will inspect food trucks for fire hazards, the police department will have the ability to enforce parking when necessary. We also reached out to the downtown dining alliance about the new opportunity that the changed ordinance would create for them. This brings up parking requirements, they will be seen mainly throughout the city in business parks where there are food deserts. Once a food truck has received its permit they will be able to park for four (4) hours. Any food trucks parking on private party would need to have a signed usage agreement from the property owner. If they are in violation they can be cited. We have worked with the health department on food truck guidelines that will be followed properly. Food trucks will have random health visits same as brick and mortars. All food trucks must park parallel to the sidewalks and at least five (5) feet away from any existing structure. They will need to have an updated license every year. A complete list of our required documents will be on DCI’s website. Ms. Adams discussed all requirements and paperwork needed for food truck establishments, along with the required health regulations. They will need a passing grade from the health department. They are prohibited from restricted areas. Councilmember Oliver Davis – I think it is a wonderful opportunity. At Ivy Tech this will allow th for the students there to create their own businesses. A lot of the food deserts are within the 6 District, where people only have thirty (30) minutes or forty-five (45) minutes for lunch. This will allow them to have quality food and get back from lunch on time. Given the restriction for food truck hours, they will not hurt the businesses downtown. Councilmember Tim Scott – I also agree with Councilmember Davis, it allows entrepreneurs who don’t want to invest in brick and mortars or commissary where they can test a menu to make sure their business is successful. There are others looking to rent out trucks to different people for a period of time. People are concerned that food trucks will take away from brick and mortar businesses, however they don’t have the same dining experience as there are no chairs or tables. They don’t do a great amount of business in the snow or the rain. Some do, but they are also limited on their menus. The popular ones sell out of their products, then they go home. There are people still loyal to the brick and mortars. Councilmember Derek Dieter – What revenue do you anticipate to come to South Bend? Ms. Adams responded that it depends on the entrepreneurs who decide to be a part of this. The fees are designed to cover maintenance and enforcement to cover the logistics. Councilmember Dieter asked if she can explain the property taxes they will have to pay. Ms. Adams responded they will pay for personal property taxes on the food trucks. If they own a commissary kitchen they will pay property taxes on that, if they rent they will pay into the taxes in their rent. 3