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Committeemember Smith stated, I do have a concern with the tip wage. I want to take more time <br /> on this. I think the majority of people impacted by this will be restaurant workers. This seems to <br /> be excessive legislation. I think this is coming with great intentions but it is not getting us where <br /> we need to go. <br /> Ms. Williams-Preston stated, This is not exempting tip workers. <br /> Committeemember Smith stated, I would like to take some extra time to get a grasp on that. <br /> There is the supply and demand curve and other basics of economics but it can go on to the <br /> Efficiency Wage Theory and the Gain Theory. <br /> Ms. Williams-Preston stated, It is just not that serious to me. My bottom line is that, look, people <br /> are poor in South Bend. That is where I'm at. <br /> Committeemember Smith interjected, And the way to bring them out of poverty is by building up <br /> business. <br /> Ms. Williams-Preston stated, That is not the way for the employee to get out of poverty. The way <br /> the employee begins to pay their light bill, water bill and feed their families, is by increasing <br /> their wage. Their employer is getting a tax-break and it seems to me it would benefit the people <br /> of South Bend employed by that employer to get paid a decent wage. And the thing is this will <br /> affect only a small number of businesses. The businesses that come to us for tax abatements <br /> already pay their employees beyond$10.10. <br /> Dr. Wolfson stated, I see Committeemember Smith may have taken some advanced economic <br /> courses, and that could be dangerous. If this were a minimum wage ordinance for the City of <br /> South Bend,there would probably be a number of tip workers that would be subject to it. But <br /> this is only, of course, companies that are receiving a tax abatement and,to my knowledge,we <br /> don't give a whole lot of tax abatements to restaurants. The tip workers are important to clarify, <br /> but it is not a significant component. <br /> Committeemember Smith stated, I guess I come from the perspective of my own experience. We <br /> started a business here twelve (12) years ago and it was my father and 1. We went around to <br /> different auto dealerships, we did the work out in the parking lots, and now he employees up to <br /> fifteen(15)people in the City. He has dreams of expanding and something like this would hurt <br /> those dreams drastically. I'm deeply conflicted because I've helped build that business and get <br /> myself out of poverty. And individuals are stating this is the way out of poverty? I am deeply <br /> conflicted. <br /> Ms. Williams-Preston stated, For me, part of why I embrace this is because I'm not just <br /> concerned about the employer. I think it is important we are friendly to development and we are <br /> pro-business. I think it is time we start figuring out how to balance that with the needs of our <br /> residents. From what I understand, it may not be a whole lot of folks and businesses that this <br /> would apply to. <br /> Councilmember John Voorde asked Committeemember Smith, Has your business applied for an <br /> abatement? <br /> 3 <br />