11-12-18 Community Investment - Laserfiche WebLink

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CITY OF SOUTH BEND OFFICE OF THE CLERK Ms. Duta replied,We have revised the project downwards since the commitment as well so we are looking at doing some value engineering on the Community Center. We were hoping for a $38 million project and it is not going to be that but we are comfortable we can get where we need to be. Rose Meissner, President of the St. Joseph County Community Foundation with offices located at 205 West Jefferson Boulevard, stated, When we reached out to Deb to talk about a vision for the Main Branch of the downtown, we retained an outstanding architect. We had to name a number. We can't hire an architect and not give them some sort of ballpark. So we started out with a $40 million number. We wanted to build a kind of building that would be preserved across generations and, as Councilmember Broden said, it is a once in a fifty (50) year type of project. So we were hoping$10 from the City, $10 million from private philanthropy and$20 million from the County. That number did get skinnier now and so I just want to make it clear that I wish it was a bigger number but if it went up again, it is really restoring what we were trying to accomplish in the first (1St) place. It doesn't create the opportunity there. If we get bigger and bigger, we will really struggle to pull off what has already been defined. But,it is a big expansion. Councilmember Davis was talking about the auditorium. I would like to see film series, lecture series and there is a lot that could go into a beautiful space like that. I think it is something the City of South Bend would be incredibly proud of. Committee Chair Ferlic then opened the floor to members of the public. Sue Kesim, 4022 Kennedy Drive, stated, I love the library. It is my favorite community asset. I looked at the State website before I got here. The City of South Bend currently has $290,495,504 of outstanding debt. $31 million is in interest. I would like to point out that the debt service and debt bubble are where we have interest and principle payments. We don't get past that debt bubble until about 2024. So it is going to be really hard to pay for anything before 2024 if you look at the debt service load that South Bend is facing. So I want you to keep that in mind for the date because if you bring that on, we may not be able to meet our debt service bubble before 2024. According to the State, per capita everybody in South Bend owes $2,871.42 on debt. What is recommended would be eight hundred dollars ($800) less than that, $1,400 maximum per person. South Bend is already at$2,871 per person in debt. We are double what is recommended, per person, in terms of our debt load,already. I love the library. If money were no object, absolutely. But last meeting you guys gave away$8 million in tax abatements.You know,the Ethanol Plant is in an enterprise zone, they didn't need it. Dairy Queen is known in the industry as a cash cow. Dairy Queen pulls in money hand over fist, so, you've got to stop giving away money that we need for better things. That is my opinion but I wanted to make you aware of why we are in this crunch. It is because you've given too many abatements. Since the Mayor has been in office, he has given over $100 million in abatements. I don't think we need to give all of those. In terms of debt,we've racked up $290 million.That is$2,800 per person and that is double of what the State recommends. So either sharpen your pencils on cutting City budgets or stop doing abatements. Get your financial priorities straight. Deb knows I love the library. Every time I walk into the library I go,thank you,this is the best use of tax dollars. I love the library. But very carefully look at our debt service bubble because we don't clear anything until 2024. EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 6