11-30-10 Common Council Meeting Minutes

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SPECIAL MEETING NOVEMBER 30, 2010 is not going to be a lot of money from the City to be able to sustain the Cove without a change in the paradigm of how to support the stadium. Mayor Luecke stated that the Professional Sports Development dollars will be used to pay off the bond. And in Bill 74-10, he feels there is sufficient dollars to pay off that bond issue. He stated that as he understands the question what happens beyond that in twenty-five years when the City needs to reinvest again. Councilmember Rouse stated that is the problem. The City doesn’t invest in increments then we are socked with an investment of this large amount. Mayor Luecke disagreed with Councilmember Rouse and stated that the City has invested in the stadium on an annual basis doing maintenance. The stadium is not falling down, there aren’t any structural deficiencies with the stadium. Councilmember Rouse stated then they don’t have to pass anything, the Cove is in good shape. Mayor Luecke stated should the city not have invested in Discovery Ballroom, because the building was structurally sound and there was space inside to hold events, clearly it has enhanced it’s ability to do additional business. The proposal that they are suggesting in an enhancement to the stadium. Councilmember Rouse stated that it is the timing. This is the toughest economic times that this country has ever faced in decades. He reiterated that he likes the project but is concerned about spending this kinds of money during these tough economic times. He stated that he gets the feeling that nobody wants to talk about how they are going to pay for the Cove in the future only right now. He stated that he believes it is necessary to look at it going forward. Mayor Luecke stated that they have funded ongoing importance maintenance to the building and will continue to do that beyond the special investment that they are asking for right now. Mayor Luecke agreed that we are all in tough economic times but there are positives for that as well as they put people in the construction trades to do that work on the stadium. You get better prices for your money then when everybody is busy and you don’t get as many bids on the project and put into place the opportunity to respond as the economy does begin growing and he thinks that we are seeing signs of that not only nationally but in South Bend. So that when people are ready to make private investment they can see that there are places ready and willing to support that.. He recalled when the city cleared a portion of Monroe Park for light industrial and at the time that was done it was a significant investment taking down buildings, clearing the land and putting in infrastructure it was bad economic times. He stated that interest rates were at 14,14, 15, 16, 17 percent. But because that investment had been made and when the economy turned around and companies were ready to build new buildings we were ready for the buildings to be built and expansions to be made. So there can be a logic to counter cyclical investment to: A. Get the best value for your dollars. B. Be prepared for private investment as the economy rebounds. Councilmember Rouse stated that he hears the Mayor saying in the future we are not going to be totally reliant on public funds to maintain and sustain the Cove. Mayor Luecke stated that was accurate and that they would be looking for private support as well. Councilmember Puzzello asked if the Mayor could explain the new taxes for Public Safety and County Option Income tax. Mayor Luecke stated that the new taxes that were adopted by the South Bend Common Council and the St. Joseph County Council were three taxes. First was a local option income tax (LOIT) and the proceeds from that goes directly to property tax relief for all classes of property throughout St. Joseph County. The second component was Public 7